The indicative 1-year primary interest rate for bank loans in China was kept constant at 3.65 percent. The 5-year benchmark interest rate was also left at 4.30 percent. 

In China, which showed divergence in monetary policy according to the global trend, benchmark interest rates were kept constant. 

In line with market expectations, the People’s Bank of China kept the 1-year loan introductory interest rate (LPR) at 3.65 percent and the 5-year interest rate at 4.30 percent. 

Marco Sun, a chief financial markets analyst at MUFG Bank, said in his assessment that the People’s Bank of China is likely to reduce the 5-year LPR by 10. Fifteen basis points in the next few months. 

“There is a possibility that the 5-year LPR will be lowered by five basis points in December to overcome the contraction in the real estate market,” said Xing Zhaopeng, ANZ’s China strategist.