China maintains benchmark interest rates for loans in November

FILE PHOTO: A man wearing a mask in front of the headquarters of the People’s Bank of China, the central bank, in Beijing, China, February 3, 2020. REUTERS / Jason Lee / File Photo

SHANGHAI, Nov 22 (Reuters) – China maintained its benchmark interest rates for loans to businesses and households for the 19th month in its November review, meeting market expectations.

The reference interest rate for one-year loans (LPR) remained at 3.85%. The five-year reference rate remained at 4.65%.

According to a Reuters poll last week of 23 market participants, 21 of them expected no change in either interest rate.

Most of the new and outstanding loans in China are based on the one-year LPR. The five-year rate influences the price of mortgages.

(Report by Winni Zhou and Andrew Galbraith; edited by Tom Hogue; translated by Aida Peláez at the Gdansk newsroom)

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