China left the one-year loan prime rate unchanged at 3.65%, five-year loan prime rate unchanged at 4.30%
|China left the one-year loan prime rate unchanged at 3.65% and the five-year loan prime rate unchanged at 4.30% as expected as authorities held off unleashing more monetary stimulus to avoid stark policy divergence with other major economies as it battles with covid.
Reuters reported:
''A Reuters poll showed 22 out of 24 respondents predicted no change to either rate, while the remaining two expected a marginal reduction to the five-year rate after the government introduced a slew of measures to prop up the property sector.''
''Most new and outstanding loans in China are based on the one-year LPR, while the five-year rate influences the pricing of mortgages. China last cut LPRs in August.''
Meanwhile, Beijing had come under strict security measures ahead of the congress, sparking frustration in the city with a rare and dramatic public protest on Thursday criticising Mr Xi and zero Covid. Before the pandemic, China's growth was around 6%. Its most recent GDP figure was 0.4%. The local government knows that zero-Covid is tanking the economy.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.