China’s benchmark lending rates were held unchanged for August, after the central bank lowered them in July.
The one-year loan prime rate was kept steady at 3.35% and the five-year rate was held 3.85%, according to a statement from the People’s Bank of China on Tuesday.
The central bank had unexpectedly trimmed both rates by about 10 basis points in July, with the move coming amid a slew of measures to help shore up local economic growth.
Official data showed that commercial banks’ net interest margins (NIMs) – a key gauge of profitability – fell to a record low of 1.54% at the end of March this year.
China’s bank lending also tumbled more than expected last month, hitting the lowest in nearly 15 years, dragged down by tepid credit demand and seasonal factors.
Source: Qatar News Agency