The offshore yuan held steady at 7.30 per dollar after the People’s Bank of China kept its key lending rates unchanged for the second consecutive month at the December fixing, in line with market expectations.
Yuan doesn't move after PBoC rate move
The one-year loan prime rate (LPR), the benchmark for most corporate and household loans, remained at 3.1%, while the five-year rate, which serves as a reference for property mortgages, stayed at 3.6%. Both rates are at historic lows following reductions in October and July. In early December, Chinese leaders indicated a shift towards a "moderately loose" monetary policy for the coming year, moving away from the current "prudent" approach to tackle growing economic challenges.
November retail sales growth fell short of expectations
On the economic front, November retail sales growth fell short of expectations, and new home prices declined for the 17th consecutive month. However, industrial production exceeded forecasts, providing a sign of resilience in the manufacturing sector.
