The People’s Bank of China has kept benchmark lending rates at record low levels at the December fixing, in line with market consensus.

The 1-year loan prime rate, a benchmark for the majority of corporate and household loans, was left at 3.1% in December.

The 5-year loan prime rate, a reference for property mortgages, was kept at 3.6%.

Both key rates were last reduced in October and July.

The latest move came after a pledge by the government this month to raise the 2025 budget deficit to 4% of GDP – or the highest on record.

Policy makers also pledged to shift monetary policy to a “moderately loose” stance in 2025, while distancing from the current “prudent” approach to address the rising challenges within the macroeconomic environment.

The USD/CNY currency pair settled 0.01% lower at 7.2956 on Friday. For the week, the currency pair went up 0.28%, as it extended the gains from the prior two weeks.