China leaves benchmark lending rates unchanged in Dec
SHANGHAI, Dec 20 (Reuters) -China left its benchmark lending rates unchanged at the monthly fixing on Friday, matching market expectations, as falling yields, shrinking net interest margins and a weakening yuan create limits for immediate monetary easing.
The one-year loan prime rate (LPR) CNYLPR1Y=CFXS was kept at 3.10%, while the five-year LPR CNYLPR5Y=CFXS was unchanged at 3.60%.
In a Reuters poll of 27 market participants conducted this week, all respondents expected both rates to stay unchanged.
Most new and outstanding loans in China are based on the one-year LPR, while the five-year rate influences the pricing of mortgages.
Chinese lenders last slashed lending benchmarks in October by bigger-than-expected margins to revive economic activity.
Reporting by Shanghai Newsroom
Editing by Shri Navaratnam
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