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Torn between weak yuan and property market, China holds rates steady

Policymakers may resort to rate cuts as economy slows

Up to now, China policymakers have favored directing liquidity to the struggling property market over broad tax cuts.   © Reuters

BEIJING -- China kept benchmark interest rates unchanged for a third straight month on Monday, holding off on cuts that could risk dragging down the yuan, though some question how long this will continue.

The one-year loan prime rate remained at 3.65%, according to an announcement by the People's Bank of China. The over-five-year rate, used as a reference for mortgages, held steady at 4.3%.

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