China's Steady Rates: A Calculated Move Amid Global Shifts

China's central bank, the People's Bank of China (PBOC), decided to keep its key lending rates steady for the fourth month in a row. This decision came despite the U. S. Federal Reserve's recent rate cut. The one-year loan prime rate (LPR) remained at 3. 0%, and the five-year LPR stayed at 3. 5%. This choice was not a surprise. Economists had predicted that China would hold off on major stimulus measures. This is because the stock market has been doing well lately. Even though some economic data shows signs of slowing down, the PBOC seems to be taking a wait-and-see approach. The last time China cut these rates was in May. That was part of a broader effort to support the economy. Since then, the PBOC has been careful about making big changes. The benchmark lending rates are not set in stone. They are calculated each month based on rates proposed by commercial banks. This system allows for some flexibility, but the PBOC seems content with the current levels for now. China's export growth has been slowing down. In August, it hit its lowest point since February. This slowdown is due to several factors, including the impact of frontloading shipments and U. S. trade policies. Looking ahead, Chinese policymakers are expected to introduce some monetary easing later this year. The goal is to ensure the economy meets the government's annual growth target of around 5%.