China's central bank holds interest rates steady

China's central bank has decided to keep its main lending rates steady. This decision comes as the country tries to stimulate economic growth while also protecting its currency. The People's Bank of China maintained the 1-year loan prime rate at 3.1% and the 5-year rate at 3.6%. These rates have not changed since a reduction last October. This move is in line with the U.S. Federal Reserve, which also held its interest rates steady recently. The 1-year loan prime rate affects most loans for businesses and individuals in China. The 5-year rate is important for setting mortgage costs. The central bank’s main policy rate, the 7-day rate, has remained at 1.5% since last October. Top Chinese officials have promised to increase monetary easing this year, including potential interest rate cuts. They aim for economic growth of about 5%. However, any adjustments will likely depend on trade policies from the U.S. government. The yuan is facing pressure due to concerns over possible higher tariffs. Market analysts are closely watching how the situation evolves.