China Holds Rates Despite Weak Economy & Property Slump

• People's Bank of China maintained 1-year (3%) and 5-year (3.5%) lending prime rates for the seventh consecutive meeting.
• The decision comes despite tepid November economic data, including lower-than-expected retail sales and industrial output.
• Retail sales increased by 1.3%, falling short of the 2.8% projection and down from the previous month's 2.9%.
• Industrial production rose 4.8%, below the 5% projection, marking the smallest rise since August 2024.
• China's real estate market continues its protracted downturn, with fixed asset investment decreasing by 2.6% and new home prices falling further.

Why It Matters: China's central bank kept benchmark rates unchanged despite worsening economic indicators and a property crisis.