The People’s Bank of China (PBOC) maintained its benchmark lending rates, holding the one-year loan prime rate at 3.1% and the five-year rate at 3.6% amid challenges to boost economic growth and a weakening yuan. Analysts anticipated this decision following a recent U.S. Federal Reserve rate cut. Experts emphasize that the Fed’s outlook is unlikely to heavily influence China’s policy but may pressure the yuan. Despite ongoing stimulus efforts, China faces deflation and weak consumer demand. Economists suggest further rate cuts and increased fiscal measures will be essential for economic recovery and to support the yuan against other currencies.
