China maintained its benchmark lending rates for the fourth straight month in September, keeping the one-year LPR at 3.0% and the five-year LPR at 3.5%. Despite weak economic data, all 20 market participants in a Reuters survey predicted no change. The move reflects cautious monetary easing amid trade tensions and domestic slowdown.

President Donald Trump announced progress on a TikTok agreement with Chinese President Xi Jinping. China’s stock market is near 10-year highs, boosted by resilient exports and a recent rally. Analysts expect monetary policy adjustments in Q4, anticipating interest rate and reserve requirement ratio cuts by the PBOC.

Recent data showed China’s economic growth slowing, with weak factory output and retail sales in August. The central bank held the seven-day reverse repo rate steady, signaling a cautious approach. Analysts are eyeing the upcoming fourth plenum in October for policy direction and expect further easing measures in the fourth quarter.

Read more at Yahoo Finance: China keeps lending rates unchanged in Sept as trade tensions ease