China pauses lending rate changes following slow GDP growth

BofA downgrades GDP outlook

The People’s Bank of China has paused changing its lending rates after the economy reported lacklustre GDP growth for Q2.

China maintained the one-year loan prime rate (LPR) was kept at 3.55%, while the five-year LPR was unchanged at 4.20%, in line with economists' expectations. The policy call follows the country's Q2 GDP results, which reported 0.8% growth for the period, a drop from the 2.2% increase in Q1. Chinese growth falters to 0.8% in second quarter of 2023 The central bank elected to hold interest rates on Monday (20 July) as well due to the loss of momentum in its economic growth. Following the results, the Bank of America said it had downgraded its GDP growth forecast for China this yea...