China keeps its benchmark lending rates unchanged as it contends with a weakening of the yuan

China left its benchmark loan rates unchanged Monday, as Beijing grapples with a weakening yuan as it awaits policy cues from the incoming administration of Donald Trump.

The People’s Bank of China kept the 1-year lending rate at 3.1%, and the 5-year LPR at 3.6%, according to the PBOC statement.

The 1-year LPR determines the rates on corporate and most household loans, while the 5-year LPR acts as a reference for mortgage loans.

The decision came before the inauguration of Donald Trump to be the next president of the United States on Monday.

China’s offshore yuan has lost more than 3% since Donald Trump’s presidential election victory in early November. The tightly controlled yuan has also retreated close a minimum of 16 months.

China’s economic activity accelerated more than expected in the last quarter of last year, as Beijing’s stimulus measures announced last September, they came in and helped the economy meet its annual growth target.

Despite the optimistic headline figureseconomists have warned that some underlying growth drivers could be temporary, amid weak consumer demand, a deepening housing market slump and impending rate hikes by the incoming Trump administration.

PBOC Governor Pan Gongsheng had signaled in September the possibility of a cut in the reserve requirement ratio, which would free up more cash for banks to lend, at the end of 2024. But the cut has not come, despite his turn to a “moderately lax” policy stance..

The PBOC had surprised the markets by cutting short- and long-term majors loan rates in Julyfollowed by a widely anticipated 25 basis point cut in October. The central bank had kept lending rates unchanged in November and December.