China's central bank left its benchmark lending rates unchanged in October, with the one-year Loan Prime Rate (LPR) steady at 3.0% and the five-year LPR at 3.5%, signaling a cautious monetary policy stance amid slowing economic growth.

The People's Bank of China maintained the LPR at 3.0% and the mortgage rate at 3.50%, aligning with market expectations and reflecting a strategy to support the economy without immediate rate changes.

This rate hold comes ahead of a key policy meeting scheduled from October 20 to 23, where China will outline its economic and social development plans for the next five years.

Despite ongoing trade tensions with the US, China remains committed to supporting its economy through monetary easing and other measures, even as external pressures persist.

The decision to keep rates unchanged indicates a strategy to maintain an ultra-loose monetary policy to counteract prolonged disinflation and support economic stability.

Recent economic data suggests China's economy is experiencing its slowest growth in a year during the third quarter, influenced by a prolonged property downturn and trade tensions, which heightens the need for additional stimulus.

Indicators point to manufacturing challenges and disinflation, prompting expectations of further economic stimulus to bolster growth.

Trade tensions with the US, including threats of tariffs and export controls, continue to weigh on China's economic outlook, adding pressure for policy easing.

Market analysts expect no rate changes before the release of third-quarter GDP data but remain cautious about potential easing later in the year to support the economy.

Policymakers are focused on maintaining liquidity to support government bonds and equities, with some economists forecasting a possible 10-basis-point rate cut and reserve requirement ratio reductions.

China's trade tensions with the US include increased export controls on rare earths and US threats of tariffs up to 100%, with new export curbs on software set to take effect from November 1.

The People's Bank of China has kept its seven-day reverse repo rate unchanged since the Federal Reserve resumed easing last month, reflecting a stable monetary policy environment.