China maintains the rates of reference loans due to the growing tariff risk

China has retained their own Key loan rates unchanged on ThursdayBecause Beijing priority treats financial stability over soothing the interest rate to strengthen the economy.

The People's Bank of China maintained a annual loan rate of 3.1%, and the 5-year LPR at 3.6%.

Reference loan rates – usually burdened with the best clients of banks – They are calculated every month on the basis of the proposed rates of commercial banks submitted to PBOC. The annual LPR affects corporate loans and most household loans in China, while the five -year LPR serves as a reference point for mortgage rates.

The decision on Thursday was consistent with the expectations Estimates of the Reuters survey.

PBOC Governor Mr. Gongsheng – he said at a conference in Saudi Arabia on Sunday that stable yuan is of key importance for maintaining global financial and economic stability. He added that although many currencies fell in relation to a stronger American dollar, Juan remained largely stable.

Chinese Juan fell by 2.5% compared to Greenback from the victory of Donald Trump's election in November.

You also noticed that China was more and more priority consumption Repeating Beijing's commitment to adopt a proactive fiscal policy and this year is an accommodation monetary policy.

PBOC has in recent months He tried to defend Juan, who would make up the pressure down Among the threats of higher tariffs, complicating its task of stimulating the weakening economy.

The Juan defense strategy has a risk for the economy, because the weaker Juan can help maintain the price of Chinese exports abroad, while the stronger currency makes imports more expensive at a time when consumer demand is already fragile.

Since the inauguration last month, US President Donald Trump has applied a 10% tariff on all imports from China, in addition to existing tariffs up to 25%.

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