PBOC maintains benchmark lending rates

Chinese central bank The People's Bank of China kept its benchmark lending rates unchanged on Tuesday, in line with market expectations.

China's one-year loan prime rate was kept at 3.35%, while its five-year LPR was unchanged at 3.85%, a month after it surprised markets by cutting major short and long-term interest rates in July.

Interactive Investor's Richard Hunter said: "There was an underwhelming reaction to the news that benchmark lending rates would be left unchanged. The news represents the latest impasse between investors and the authorities, with the former group still calling for more aggressive stimulus to improve the economic outlook, especially within the real estate and consumer sectors. However, Chinese officials tend famously to take a much longer-term view on the general direction of economic prospects, which in turn can often exasperate investors looking for a quicker fix."

Reporting by Iain Gilbert at Sharecast.com