China is keeping its benchmark lending interest rates unchanged as it deals with the weak yuan

China has left its standard Lending rates remain unchanged Monday, as Beijing faces a weaker yuan while awaiting policy clues from the incoming Donald Trump administration.

The People’s Bank of China kept the key one-year loan interest rate at 3.1%, and the five-year loan interest rate at 3.6%, according to a PBOC statement.

The 1-year LPR sets interest rates on corporate and most household loans, while the 5-year LPR serves as a reference for mortgage loans.

This decision came shortly before the inauguration of Donald Trump as President of the United States on Monday.

The overseas Chinese yuan has lost more than 3% since Donald Trump won the presidential elections in early November. The tightly controlled onshore yuan also declined to nearly that Lowest level in 16 months.

Economic activity in China It accelerated more than expected In the last quarter of last year, with the start of implementing the stimulus measures announced by Beijing since last September and helping the economy achieve its annual growth goal.

in spite of Upbeat headline numbersEconomists have warned that some of the underlying growth drivers may be temporary, amid weak consumer demand, a deepening housing market decline and looming tariff hikes from the incoming Trump administration.

People’s Bank of China (PBOC) Governor Pan Gongsheng In September, he indicated the possibility of this happening Reducing the reserve requirement ratio, which would free up more cash for banks to lend, by the end of 2024. The reduction has not arrived, although… Its shift to a “rather loose” political position..

The People’s Bank of China surprised the markets by reducing the volume of major currencies in the short and long term Lending rates in Julyfollowed by It is a widely expected cut of 25 basis points in October. The central bank kept lending rates unchanged in November and December.