China expectedly keeps benchmark lending rates steady as Beijing assesses stimulus measures

China’s central bank maintained major benchmark lending rates unchanged, with the 1-year loan prime rate at 3.1% and the 5-year LPR at 3.6%, as they assess the impact of recent stimulus measures. Market watchers expected the rates to remain steady this month, with analysts suggesting that a policy rate cut before the end of the year is unlikely, but interest rate cuts may occur in 2025 to support the economy. Despite lackluster economic data in October, such as slower industrial production growth, retail sales beat expectations, indicating that recent stimulus measures are starting to have an effect.

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