China Unexpectedly Keeps Key Lending Rates Steady Despite U.S. Fed's Rate Cut

The People's Bank of China defied market expectations by maintaining its benchmark lending rates to support economic stability.

China's one-year loan prime rate (LPR) remains at 3.35%, while the five-year LPR stays at 3.85%.
Market analysts had largely anticipated a rate cut following the U.S. Federal Reserve's 50 basis point reduction.
The decision comes amid China's ongoing efforts to address a prolonged property crisis and weaker consumer and business sentiment.
Recent economic data showed slower-than-expected growth in retail sales, industrial production, and urban investment.
Major financial institutions have revised their forecasts for China's 2024 GDP growth to below the government's target of 5%.