China leaves lending benchmarks unchanged for 11th month in April

SHANGHAI, April 20 (Reuters) – China on Monday left benchmark loan prime rates (LPRs) unchanged for the 11th consecutive month in ​April, in line with market expectations.

Solid economic growth ‌at the start of the year and a pick-up in inflation reduced the need for fresh monetary easing to support the broader economy.

It kept the one-year LPR at 3.00% and five-year ​LPR at 3.50%.

In a Reuters survey of 20 market participants ⁠conducted last week, all participants predicted no change to either ​of the two rates.

** The Chinese economy’s 5.0% annual growth pace in ​the first quarter sits at the top of its full-year target range of 4.5%-5.0%, highlighting a resilience that sets it apart from much of Asia, ​helped by ample strategic oil reserves and a diversified energy ​mix.

** China’s factory-gate prices rose for the first time in more than three years ‌in ⁠March, in an early sign that the war in Iran is feeding cost pressures into the world’s second-largest economy.

“With no clear signs of a sharp slowdown and credit demand ​yet to recover ​meaningfully, policymakers are ⁠likely to stay with targeted easing rather than shift toward broad-based rate cuts.”

** Societe Generale

“Despite the ​strong first-quarter GDP, policymakers are likely to refrain ​from further ⁠easing at the late-April Politburo meeting, even amid the Middle East conflict.

“Under a contained conflict scenario lasting only a few months, we ⁠do ​not expect additional fiscal stimulus this ​year and see scope for just one People’s Bank of China (PBOC) rate cut toward ​year-end.”