Offshore Yuan Steady After PBOC Decision

The offshore yuan was little changed to around 7.17 per dollar on Monday, as markets digested the latest policy decision from the People’s Bank of China. As widely expected, the central bank kept its benchmark lending rates at historic lows during its July rate-setting. The 1-year loan prime rate, a key reference for most corporate and household loans, was held at 3%, while the 5-year LPR, which guides mortgage rates, stayed at 3.5%. The move comes amid ongoing signs of weak consumer sentiment and uneven economic growth. Rising external risks, particularly from newly imposed US tariffs, also continue to weigh on the outlook. On Sunday, the White House reiterated its tariff stance, calling August 1 the “hard deadline” for countries to begin paying tariffs. Meanwhile, Trump and Chinese President Xi are considering a meeting before or during the Asia-Pacific Economic Cooperation summit in South Korea this October. The talks aim to tackle trade disputes and seek cooperative solutions.