News

China Holds LPR Rates at Record Lows for 11th Month
The People’s Bank of China maintained its key lending rates at record lows for an 11th straight month in April 2026, matching market expectations. The move reflects caution about the fallout from the war in the Middle East, even as domestic deflationary pressures ease and early-year growth proves resilient. The one-year loan prime rate, the benchmark for most corporate and household borrowing, stayed at 3.0%, while the five-year LPR, tied to mortgages, remained at 3.5%. The decision followed first-quarter GDP growth of 5%, up from 4.5% in late 2025 and at the top of Beijing’s full-year target range. Authorities have lowered that target to 4.5%–5%, the least ambitious since the 1990s. Meanwhile, the central bank has pledged to keep policy “supportive” and “moderately loose” to shore up activity while maintaining currency stability.
Published on 2026-04-20

China Holds LPR Rates at Record Lows for 11th Month
The People’s Bank of China maintained its key lending rates at record lows for an 11th straight month in April 2026, matching market expectations. The move reflected caution about the fallout from the war in the Middle East, even as domestic deflationary pressures ease and early-year growth proves resilient. The one-year loan prime rate (LPR), the benchmark for most corporate and household borrowing, was held at 3.0%, while the five-year LPR, a reference for mortgage rates, remained at 3.5%. In Q1 2026, China's economy expanded by 5%, accelerating from 4.5% in late 2025 and placing it at the top of Beijing’s full-year target range. Authorities have lowered that target to 4.5%–5%, the least ambitious since the 1990s. Meanwhile, the central bank has pledged to keep policy “supportive” and “moderately loose” to shore up activity while maintaining currency stability.
Published on 2026-04-20

China Holds LPR Rates at Record Lows for 11th Month
The People’s Bank of China maintained its key lending rates at record lows for an 11th straight month in April 2026, matching market expectations. The move reflected caution about the fallout from the war in the Middle East, even as domestic deflationary pressures ease and early-year growth proves resilient. The one-year loan prime rate (LPR), the benchmark for most corporate and household borrowing, was held at 3.0%, while the five-year LPR, a reference for mortgage rates, remained at 3.5%. The decision followed first-quarter GDP growth of 5%, up from 4.5% in late 2025 and at the top of Beijing’s full-year target range. Authorities have lowered that target to 4.5%–5%, the least ambitious since the 1990s. Meanwhile, the central bank has pledged to keep policy “supportive” and “moderately loose” to shore up activity while maintaining currency stability.
Published on 2026-04-20

China Holds LPR Rates at Record Lows for 11th Month
The People’s Bank of China maintained its key lending rates at record lows for an 11th straight month in April 2026, matching market expectations. The one-year loan prime rate (LPR), the benchmark for most corporate and household borrowing, was kept at 3.0%, while the five-year LPR, used for mortgages, remained at 3.5%.
Published on 2026-04-20

China Holds LPR Rates at Record Lows for 11th Month
The People’s Bank of China maintained its key lending rates at record lows for an 11th straight month in April 2026, matching market expectations. The move reflected caution about the fallout from the war in the Middle East, even as domestic deflationary pressures ease and early-year growth proves resilient. The one-year loan prime rate (LPR), the benchmark for most corporate and household borrowing, was held at 3.0%, while the five-year LPR, a reference for mortgage rates, remained at 3.5%. In Q1 2026, China's economy expanded by 5%, accelerating from 4.5% in late 2025 and placing it at the top of Beijing’s full-year target range. Authorities have lowered that target to 4.5%–5%, the least ambitious since the 1990s. Meanwhile, the central bank has pledged to keep policy “supportive” and “moderately loose” to shore up activity while maintaining currency stability.
Published on 2026-04-20

China Holds LPR Rates at Record Lows for 11th Month
The People’s Bank of China maintained its key lending rates at record lows for an 11th straight month in April 2026, matching market expectations. The move reflected caution about the fallout from the war in the Middle East, even as domestic deflationary pressures ease and early-year growth proves resilient. The one-year loan prime rate, the benchmark for most corporate and household borrowing, stayed at 3.0%, while the five-year LPR, tied to mortgages, remained at 3.5%. The decision followed first-quarter GDP growth of 5%, up from 4.5% in late 2025 and at the top of Beijing’s full-year target range. Authorities have lowered that target to 4.5%–5%, the least ambitious since the 1990s. Meanwhile, the central bank has pledged to keep policy “supportive” and “moderately loose” to shore up activity while maintaining currency stability.
Published on 2026-04-20

China Holds LPR Rates at Record Lows for 10th Month
The People’s Bank of China (PBoC) kept key lending rates at record lows for a tenth straight month in March 2026, aligning with market expectations. The one-year loan prime rate (LPR) was held at 3.0%, while the five-year LPR, used for mortgages, stayed at 3.5%, signaling a preference for stability over aggressive stimulus. Beijing set a 2026 growth target of 4.5%–5%, the lowest since 1991, after years of “around 5%.” Still, activity data in the first two months of 2026 showed a firm start, with industrial output and retail sales beating forecasts, and fixed-asset investment rising 1.8% against expectations for a decline. However, headwinds remain. Externally, weak demand, trade tensions, and a strong dollar may tighten conditions and pressure the yuan. Domestically, property woes, soft sentiment, and cautious hiring weigh on consumption, leaving policymakers to favor targeted support over broad rate cuts.
Published on 2026-03-20

China Holds LPR Rates at Record Lows for 10th Month
The People’s Bank of China kept its key lending rates unchanged at record lows for a tenth straight month in March 2026, in line with market expectations. The one-year loan prime rate (LPR), a benchmark for most corporate and household borrowing, was held at 3.0%, while the five-year LPR, which guides mortgage rates, remained at 3.5%.
Published on 2026-03-20

China Holds LPR Rates at Record Lows for 10th Month
The People’s Bank of China (PBoC) kept its key lending rates unchanged at record lows for a tenth straight month in March 2026, aligning with market expectations and signaling a preference for stability over aggressive stimulus. The one-year loan prime rate (LPR), the benchmark for most corporate and household borrowing, was held at 3.0%, while the five-year LPR, used for mortgages, stayed at 3.5%. The cautious stance reflected surging oil prices and Middle East tensions clouding inflation risks, alongside Beijing’s lower 2026 growth target of 4.5%–5%, its weakest since 1991, reducing urgency for broad easing. Still, early-year data showed resilience, with industrial output and retail sales beating forecasts and fixed investment rebounding. Yet headwinds remain: externally, weak demand, trade frictions, and a strong dollar pressure the yuan; domestically, property sector strains, soft sentiment, and cautious hiring weigh on consumption.
Published on 2026-03-20

China Holds LPR Rates at Record Lows for 10th Month
The People’s Bank of China (PBoC) kept its key lending rates unchanged at record lows for a tenth straight month in March 2026, aligning with market expectations and signaling a preference for stability over aggressive stimulus. The one-year loan prime rate (LPR), the benchmark for most corporate and household borrowing, was held at 3.0%, while the five-year LPR, used for mortgages, remained at 3.5%. The cautious stance reflects surging oil prices and Middle East tensions clouding the inflation outlook, alongside Beijing’s lower 2026 growth target of 4.5%–5%, its weakest since 1991, reducing the urgency for broad easing. Still, early-year data pointed to resilience, with industrial output and retail sales beating forecasts and fixed-asset investment rebounding. Yet headwinds persist: externally, weak demand, trade frictions, and a strong dollar are pressuring the yuan; domestically, property sector strains, soft sentiment, and cautious hiring continue to weigh on consumption.
Published on 2026-03-20

China Holds LPR Rates at Record Lows for 10th Month
The People’s Bank of China (PBoC) kept its key lending rates unchanged at record lows for a tenth straight month in March 2026, in line with expectations and signaling a preference for stability over aggressive stimulus. The one-year loan prime rate (LPR), the benchmark for most corporate and household borrowing, was held at 3.0%, while the five-year LPR, used for mortgages, stayed at 3.5%. The cautious stance reflected surging oil prices and Middle East tensions clouding inflation risks, alongside Beijing’s lower 2026 growth target of 4.5%–5%, its weakest since 1991, reducing urgency for broad easing. Still, early-year data showed resilience, with industrial output and retail sales beating forecasts and fixed investment rebounding. Yet headwinds remain: externally, weak demand, trade frictions, and a strong dollar pressure the yuan; domestically, property sector strains, soft sentiment, and cautious hiring weigh on consumption.
Published on 2026-03-20

China Holds LPR Rates at Record Lows for 10th Month
The People’s Bank of China (PBoC) kept its key lending rates unchanged at record lows for a tenth consecutive month in March 2026, aligning with market expectations and signaling a preference for stability over aggressive stimulus. The one-year loan prime rate (LPR) was held at 3.0%, while the five-year LPR, used for mortgages, stayed at 3.5%. Beijing has set a 2026 growth target of 4.5%–5%, the lowest since 1991, after years of “around 5%.” Still, activity data in the first two months of the year showed a firm start, with industrial output and retail sales beating forecasts, and fixed-asset investment rising 1.8% against expectations for a decline. However, headwinds remain. Externally, weak demand, trade tensions, and a strong dollar may tighten conditions and pressure the yuan. Domestically, property woes, soft sentiment, and cautious hiring weigh on consumption, leaving policymakers to favor targeted support over broad rate cuts.
Published on 2026-03-20

China Keeps LPR Rates Unchanged in February
The People’s Bank of China (PBoC) left its benchmark lending rates unchanged for a ninth consecutive month in February, in line with market expectations, signaling policymakers are not rushing to introduce broad monetary easing after recent targeted measures. The one-year loan prime rate (LPR) was held at 3.0%, while the five-year LPR, the benchmark for mortgage rates, remained at 3.5%. The steady decision comes as authorities balance growth support with financial stability risks. China met its roughly 5% growth target in 2025 on strong exports, but structural imbalances, trade frictions, and rising geopolitical uncertainty continue to cloud the outlook. Earlier this month, the central bank pledged to step up financial support to boost domestic demand as industrial overcapacity and weak consumption weigh on business confidence, while signaling scope for further reserve requirement ratio cuts and broader easing later this year.
Published on 2026-02-24

China Keeps LPR Rates Unchanged in February
The People’s Bank of China (PBoC) left its benchmark lending rates unchanged for a ninth consecutive month in February, in line with market expectations, signalling policymakers are not rushing to introduce broad monetary easing after recent targeted measures. The one-year loan prime rate (LPR) was held at 3.0%, while the five-year LPR, the benchmark for mortgage rates, remained at 3.5%. The steady decision comes as authorities balance growth support with financial stability risks. China met its roughly 5% growth target in 2025 on strong exports, but structural imbalances, trade frictions, and rising geopolitical uncertainty continue to cloud the outlook, with growth projected to slow to around 4.5% in 2026. Earlier this month, the central bank pledged to step up financial support to boost domestic demand as industrial overcapacity and weak consumption weigh on business confidence, while signalling scope for further reserve requirement ratio cuts and broader easing later this year.
Published on 2026-02-24

China Keeps LPR Rates Unchanged in February
The People’s Bank of China (PBoC) held its key lending rates at record lows for the ninth consecutive month in February, in line with market expectations. The five-year LPR, which anchors mortgage rates, was also kept unchanged at 3.5%. Both rates were last cut by 10 basis points in late May. The decision followed data released earlier this month showing consumer prices rose less than expected in January, while producer deflation persisted, extending the current streak to more than three years and underscoring ongoing deflationary pressures. Home prices also continued to decline, highlighting the lingering property sector crisis. Meanwhile, new yuan loans surged to CNY 4,710 billion in January from CNY 910 billion in December but fell short of CNY 5,130 billion a year earlier and market expectations of around CNY 5,000 billion, pointing to weak credit demand.
Published on 2026-02-24

China Keeps LPR Rates Unchanged in February
The People’s Bank of China (PBoC) left its benchmark lending rates unchanged for a ninth consecutive month in February, in line with market expectations, signaling policymakers are not rushing to introduce broad monetary easing after recent targeted measures. The one-year loan prime rate (LPR) was held at 3.0%, while the five-year LPR, the benchmark for mortgage rates, remained at 3.5%. The steady decision comes as authorities balance growth support with financial stability risks. China met its roughly 5% growth target in 2025 on strong exports, but structural imbalances, trade frictions, and rising geopolitical uncertainty continue to cloud the outlook, with growth projected to slow to around 4.5% in 2026. Earlier this month, the central bank pledged to step up financial support to boost domestic demand as industrial overcapacity and weak consumption weigh on business confidence, while signaling scope for further reserve requirement ratio cuts and broader easing later this year.
Published on 2026-02-24

China Holds LPR Rates at Record Lows for 8th Month
The People’s Bank of China (PBoC) kept key lending rates at record lows for an eighth consecutive month in January, in line with market expectations, after earlier reductions to the central bank’s relending and rediscount facility rates had already taken effect. Last Thursday, the PBoC announced cuts to sector-specific interest rates of 25 bps, effective January 19, to provide an early boost to the economy. The one-year Loan Prime Rate (LPR), the benchmark for most corporate and household borrowing, remained at 3.0%, while the five-year LPR, which anchors mortgage rates, was unchanged at 3.5%. Both rates were last cut by 10 bps in May. The decision followed data released on Monday showing that GDP growth in 2025 met the official target of 5%, despite a lingering property sector crisis. Meanwhile, new yuan loans in December were significantly higher than in November and exceeded market expectations, supported by government stimulus measures aimed at boosting credit demand.
Published on 2026-01-20

China Holds LPR Rates at Record Lows for 8th Month
The People’s Bank of China (PBoC) kept key lending rates at record lows for an eighth consecutive month in January, in line with market expectations, after earlier reductions to the central bank’s relending and rediscount facility rates had already taken effect. The one-year Loan Prime Rate (LPR), the benchmark for most corporate and household borrowing, remained at 3.0%, while the five-year LPR, which anchors mortgage rates, was unchanged at 3.5%. Both rates were last cut by 10 basis points in May. The decision followed data released on Monday showing that GDP growth in 2025 met the official target of 5%, despite a lingering property sector crisis. Meanwhile, new yuan loans in December were significantly higher than in November and exceeded market expectations, supported by government stimulus measures aimed at boosting credit demand.
Published on 2026-01-20

China Holds LPR Rates Steady for 8th Month
The People’s Bank of China (PBoC) kept key lending rates at record lows for an eighth consecutive month in January, in line with market expectations. The move followed the central bank’s decision last week to cut sector-specific interest rates to boost the economy and signal further reductions in banks’ cash reserve requirements and broader rate cuts. The one-year Loan Prime Rate (LPR), the benchmark for most corporate and household borrowing, remained at 3.0%, while the five-year LPR, which anchors mortgage rates, was unchanged at 3.5%. Both rates were last cut by 10 basis points in May. The decision came after data released on Monday showed that GDP growth in 2025 met the official target of 5%, despite a lingering property sector crisis. Meanwhile, new yuan loans in December were significantly higher than in November and exceeded market expectations, supported by government stimulus measures aimed at boosting credit demand.
Published on 2026-01-20

China Holds LPR Rates Steady for 8th Month
The People’s Bank of China (PBoC) kept key lending rates at record lows for an eighth consecutive month in January, in line with market expectations. The move followed the central bank’s decision last week to cut sector-specific interest rates to boost the economy and signal further reductions in banks’ cash reserve requirements. The one-year Loan Prime Rate (LPR), the benchmark for most corporate and household borrowing, remained at 3.0%, while the five-year LPR, which anchors mortgage rates, was unchanged at 3.5%. Both rates were last cut by 10 basis points in May. The decision came after data released on Monday showed that GDP growth in 2025 met the official target of 5%, despite a lingering property sector crisis. Meanwhile, new yuan loans in December were significantly higher than in November and exceeded market expectations, supported by government stimulus measures aimed at boosting credit demand.
Published on 2026-01-20