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China leaves lending benchmark LPR unchanged but rate hike expectations grow
China kept its benchmark lending rate for corporate and household loans unchanged at its December fixing on Monday, as expected, although improving economic fundamentals have raised speculation about a rate hike next year. The one-year loan prime rate (LPR) was kept at 3.85%, while the five-year LPR remained at 4.65%. The rates have been unchanged for eight straight months. For the year, the one-year LPR was down a total 30 basis points of rate cuts, and the five-year rate was cut by 15 bps of two cuts in 2020. Most new and outstanding loans are based on the LPR, while the five-year rate influences the pricing of ... (full story)