RTTNews reports that People's Bank of China left its benchmark lending rates unchanged, as widely expected. The one-year loan prime rate was retained at 3.85 percent and the five-year loan prime rate was maintained at 4.65 percent. The one-year and five-year loan prime rates were last lowered in April 2020. 

Julian Evans-Pritchard and Sheana Yue, economists at Capital Economics, said that the inaction did not come as a surprise since the People's Bank of China had not adjusted the rate on its medium-term lending facility this month as it did ahead of the past three LPR moves.

The scope for hiking rates this year is diminishing. The PBOC appears to favor quantitative controls on lending instead, they noted. Either way, credit conditions are set to be less favorable this year.