China leaves rates unchanged, weak yuan limits easing
WHY IT'S IMPORTANT
Persistent deflationary pressure and tepid credit demand call for more stimulus to aid the broad economy, but narrowing interest margin on the back of fast falling yields and a weakening yuan limit the scope for immediate monetary easing.
BY THE NUMBERS
The one-year loan prime rate (LPR) was kept at 3.10%, while the five-year LPR was unchanged at 3.60%.
In a Reuters poll of 27 market participants conducted this week, all respondents expected both rates to stay unchanged.
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