China kept its loan prime rates unchanged Monday, with the 1-year LPR at 3.1% and the 5-year at 3.6%, aiming to stabilize the yuan amid rising U.S. trade tensions.

The decision followed stronger-than-expected economic data, including 5.4% GDP growth in Q1 and solid retail and industrial numbers.

The move aligns with expectations, as the central bank holds off easing due to currency concerns and awaits potential Fed rate cuts, CNBC has reported.

Despite growth, China remains in deflation, with consumer prices down 0.1% and producer prices falling 2.5% in March.

Written by B.C. Begley