China's central bank follows U.S. Fed in keeping rates steady as tariff threats pressure yuan

China decided to keep its key lending rates unchanged, with the 1-year loan prime rate at 3.1% and the 5-year LPR at 3.6%, following the U.S. Federal Reserve’s decision to hold interest rates. The People’s Bank of China aims to stabilize the currency amidst trade tensions, with the yuan facing pressure and officials preparing for monetary easing measures to support growth and maintain stability. The yuan remained stable against the dollar post-announcement, while the 10-year government bond yield fell, as China plans for interest rate cuts to achieve an ambitious growth target of “around 5%”.

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