PBOC keeps LPR's lending development unchanged in October
A pedestrian walks past People's Bank of China (PBOC) headquarters on August 6, 2019 in Beijing, China.
Xu Jinbai | Visual China Group | Getty Images
On Monday, China unexpectedly unchanged its new benchmark lending rate for the first time since its debut in August, suggesting Beijing is keen to avoid overly loosening monetary policy for fear it could push up already high debt levels across the economy.
The one-year loan price (LPR) was 4.20%, up from the previous monthly fix. The five-year LPR was fixed at 4.85%, unchanged from September.
A Reuters poll last week had predicted that the rate would be reduced again after reductions in August and last month.
It is the third determination since the People's Bank of China (PBOC) unveiled the new lending standard, set by 1[ads1]8 banks.
The new LPR is linked to the interest rate on PBOC's medium-term long-term lending facility (MLF), which is determined by a greater demand for the central bank's liquidity system. The one-year MLF rate, last cut in February 2016, now stands at 3.3%.
