China keeps October loan prime rates unchanged

China's central bank, the People's Bank of China (PBOC), announced Tuesday it would keep the loan prime rate (LPR) for October unchanged, with the one-year LPR staying at three percent and the over-five-year LPR holding at 3.5 percent.

The rates were announced by the National Interbank Funding Center, authorized by the PBOC. The published LPR rates will remain in effect until the next LPR release.

By maintaining these rates, the PBOC aims to keep borrowing costs steady across the economy, as the one-year rate guides corporate and household loans while the five-year rate directly impacts residential mortgages.

China keeps October loan prime rates unchanged

The central parity rate of the Chinese currency renminbi, or the yuan, strengthened 8 pips to 6.7200 against the U.S. dollar Tuesday, according to the China Foreign Exchange Trade System.

In China's spot foreign exchange market, the yuan is allowed to rise or fall by 2 percent from the central parity rate each trading day.

The central parity rate of the yuan against the U.S. dollar is based on a weighted average of prices offered by market makers before the opening of the interbank market each business day.

Chinese yuan strengthens to 6.7200 against USD Tuesday