PBOC kept interest rates unchanged at 2.85%.

The People’s Bank of China kept its key interest rate unchanged in a surprise move, despite expectations of more stimulus, as Beijing is currently suffering from a spike in coronavirus cases.

The People’s Bank of China said it kept the one-year medium-term loan rate unchanged at 2.85%.

China is currently facing the worst outbreak of the Corona virus since the beginning of the epidemic in late 2019, as major cities such as Shanghai are closed.

The mass shutdowns have raised expectations that GDP growth will fall below the government’s target of 5.5% for this year, leading some economists and analysts to expect a rate cut.