The indicative 1-year main interest rate for bank loans in China was kept at 3.7 percent.

Benchmark interest rates still remain unchanged in China. The indicative 1-year main interest rate (LPR) for bank loans in China was left at 3.7 percent. This was also the expectation of economists participating in the Bloomberg survey.

This interest rate was last reduced in January. The 5-year benchmark interest rate was also kept constant at 4.45%. Economists did not expect a reduction in this rate.

Economists pointed out that there appears to be less urgency to lower interest rates as economic activity recovers with the loosening of measures in Shanghai. The People’s Bank of China may also be on hold to see how much Fed can raise interest rates.