China yuan

China keeps benchmark lending rates steady amid pressure on yuan


China kept benchmark lending rates unchanged at their monthly fixing on Monday, matching expectations with Beijing seen as having limited scope for monetary easing amid downward pressure on the yuan.

The decision came after the People’s Bank of China (PBOC) surprised markets last week by holding its medium-term lending facility rate steady.

The central bank has stood pat despite recent data underscoring the uneven nature of China’s economic recovery and deflationary pressures pushing up real borrowing costs.

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