Overview

China’s banks have decided to keep their benchmark loan rates stable for the month of September. This decision comes after the economy, which is the second-largest in the world, has shown signs of stabilization due to recent policy support.

Details

The People’s Bank of China (PBOC) has chosen to maintain its one-year loan prime rate, which affects most household and corporate loans, at 3.45%. Additionally, the five-year benchmark loan rate, which impacts most mortgages, will remain at 4.2%. These decisions were announced in a statement released by the PBOC on Wednesday.

This decision is in line with economists’ predictions for September, as the PBOC had already kept its medium-term policy rate unchanged the previous Friday. This followed the announcement of a second reduction in the reserve requirement ratio requirements for all banks, made on the previous Thursday.

It is important to note that China’s loan prime rate is determined monthly based on the proposed rates submitted by 18 designated commercial banks to the People’s Bank of China.

Please note that this information is breaking news and further updates may follow.