China leaves rates unchanged as expected

China kept benchmark lending rates unchanged as expected on Wednesday.

The one-year loan prime rate (LPR) was held at 3.45% and the five-year - on which mortgages are based - at 4.20%.

A record 800 billion yuan ($112bn) of one-year loans was pumped into the economy by the central bank last week in an attempt to bolster the stuttering recovery from the country's relaxation of harsh Covid restrictions.

"We think a reserve requirement ratio cut would have a stronger signalling effect to the market and would not require assets from borrowers as collateral. In any case, we think monetary policy is playing a secondary role in supporting the economy, while fiscal policy is taking the leading role," said Kelvin Lam, senior China+ economist at Pantheon Macroeconomics.

Reporting by Frank Prenesti for Sharecast.com