PBOC holds benchmark policy rates steady

20th Mar 2026 08:26

(Sharecast News) - China's central bank moved to steady markets on Friday as Middle East tensions unsettled investors, keeping its benchmark policy rates unchanged.

The People's Bank of China held loan prime rates steady for a tenth straight month, keeping the one‑year loan prime rate at 3% and the five‑year rate at 3.5%, signalling a preference for currency stability and market calm without deploying rate‑cut capacity too early.

The PBOC also pledged to use its full policy toolkit to keep stocks, bonds and FX markets functioning smoothly, and set a stronger daily fixing for the yuan, its firmest since April 2023, while

China's 10‑year government bond yield edged back toward 1.83% following the central bank's latest policy decision, rebounding from a one‑week low.

Reporting by Iain Gilbert at Sharecast.com