China leaves benchmark lending rates unchanged as expected, despite Fed rate cut

Core Points - The People's Bank of China (PBOC) has maintained its benchmark lending rates unchanged for the fourth consecutive month, with the one-year loan prime rate (LPR) at 3.0% and the five-year LPR at 3.5% [2][3][4] - This decision aligns with economists' expectations, as Chinese authorities are refraining from major stimulus measures despite signs of economic fatigue [3][5] - The PBOC's last rate cut occurred in May, where key lending rates were reduced by 10 basis points as part of efforts to support the economy [3][4] Economic Context - China's export growth slowed to 4.4% in August, the lowest rate since February, influenced by waning frontloading shipments and U.S. trade policies [5] - Policymakers are anticipated to implement marginal monetary easing later this year to achieve the government's annual growth target of around 5% [5]