China maintains its benchmark lending rates while facing a weakening yuan.

• The PBOC announced that the 1-year loan prime rate remained at 3.1%, while the 5-year LPR was set at 3.6%, according to the statement.
• The decision to be the next president of the U.S. was made before Donald Trump's inauguration on Monday.
• Since Donald Trump's presidential election victory in early November, China's offshore yuan has lost more than 3%, while the tightly-controlled onshore yuan has retreated to near a 16-month low.

Beijing kept its benchmark lending rates unchanged Monday, despite a weakening yuan and uncertainty about policy from the incoming Trump administration.

The PBOC announced that the 1-year loan prime rate remained at 3.1%, while the 5-year LPR was set at 3.6%, according to the statement.

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

The decision to be the next president of the U.S. was made before Donald Trump's inauguration on Monday.

Since Donald Trump's presidential election victory in early November, China's offshore yuan has lost more than 3%, while the tightly-controlled onshore yuan has retreated to near a 16-month low.

Beijing's stimulus measures, announced in September, helped China's economic activity accelerate more than expected in the final quarter of last year, enabling the country to meet its annual growth target.

Although the headline figures show positive growth, economists warned that some of the underlying drivers may be temporary, due to weak consumer demand, a declining property market, and potential tariff hikes from the Trump administration.

Despite shifting to a "moderately loose" policy stance, PBOC governor Pan Gongsheng did not implement a cut in the reserve requirement ratio by the end of 2024, which would have freed up more cash for banks to lend.

In July, the PBOC surprised the markets by reducing the major short- and long-term lending rates. This was followed by a widely-anticipated 25-basis-point cut in October. However, the central bank kept the lending rates unchanged in November and December.