Weaker yuan, persistent capital outflows limit PBoC ability to ease monetary conditions

Reuters with a recap of the unchanged loan prime rates from China today:

ICYMI:

• one-year loan prime rate (LPR) was kept at 3.65%
• five-year LPR was unchanged at 4.30%

These were expected after the MLF was left at an unchanged rate last week.

Reuters recap, in brief:

• China kept its benchmark lending rates unchanged for the third straight month on Monday, as a weaker yuan and persistent capital outflows continued to limit Beijing's ability to ease monetary conditions to support the economy.
• "We think there's probability to lower the 5-year LPR in December due to the downturn in the property market," said Xing Zhaopeng, senior China strategist at ANZ.

(the 5-year LPR is used for mortgage rate reference)

Graph of the LPRs via Bloomberg: