(Adds details, comments)<\/p>\n
SHANGHAI, Aug 20 (Reuters) – China left its benchmark lending rate for corporate and household loans unchanged for a 16th straight month at its August fixing on Friday, as widely expected.<\/p>\n
The one-year loan prime rate (LPR) was kept at 3.85%. The five-year LPR remained at 4.65%. The rate was unchanged for the 16th straight month.<\/p>\n
Twenty-five traders and analysts, or 78% of 32 participants in a snap poll, had predicted no change in either tenor, while the remaining seven respondents all expected a cut to the one-year LPR.<\/p>\n
The People\u2019s Bank of China (PBOC) injected billions of yuan through medium-term loans into the financial system earlier this week, which many market participants interpreted as an effort to prop up activity, although the cost of such borrowing was left unchanged.<\/p>\n
The interest rate of the MLF, which serves as a guide for the LPR, has been unchanged for 16 straight months, which has led to a steady LPR, they said.<\/p>\n
\u201cIf the MLF rate remains unchanged, it\u2019s hard for the LPR to move by itself,\u201d said a trader at a Chinese bank.<\/p>\n