China kept its main benchmark lending rates unchanged on Friday, as Beijing faces the challenge of bolstering economic growth while backstopping a weakening yuan. The People's Bank of China said it would steady the one-year loan prime rate at 3.

China is widely expected to leave its benchmark lending rates unchanged on Friday, a Reuters poll showed, as falling yields, shrinking net interest margins and a weakening yuan create limits for immediate monetary easing.

The benchmark loan prime rates remained unchanged in China, extending a hold for a second month after a reduction in October.

China left its benchmark lending rates unchanged as expected at the monthly fixing on Friday. WHY IT'S IMPORTANT Persistent deflationary pressure and tepid credit demand call for more stimulus to aid the broad economy,

People's Bank of China kept its key lending rates steady for the second straight month during its December fixing, as widely expected. The one-year loan prime rate (LPR), the benchmark for most corporate and household loans,