China left its benchmark loan prime rates (LPR) unchanged on Monday, signaling a steady policy stance despite persistent inflation concerns and a struggling property market.
The one-year LPR remains at 3.10%, while the five-year LPR, a crucial reference for mortgages, holds steady at 3.60%, according to the National Interbank Funding Center.
The rates, determined on the 20th of each month based on submissions from major banks, reflect current funding costs and credit risks.
The decision follows a stronger-than-expected 5.4% year-on-year GDP growth in the first quarter, exceeding both ING Research's forecast and market expectations.
However, ING cautions that the second quarter may face setbacks, particularly from heightened trade tensions with the US under President Trump.
On the property front, March data showed a smaller-than-expected decline in home prices, with new home prices down just 0.08% and used homes falling by 0.23% from the previous month.
This could indicate that the property market is finding a bottom after months of declines, according to ING Research.
ING suggests that stabilizing the housing market remains a key priority for authorities, noting that consumer confidence is unlikely to recover while property values continue to drop.
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