China Keeps LPR Rates Steady for 7th 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.

The People’s Bank of China (PBoC) maintained key lending rates at record lows for a seventh consecutive month in December, in line with market expectations. The move came after the central bank left its seven-day reverse repo rate unchanged at 1.4% this month, now serving as the main policy rate, following the central bank’s signalling less urgency for additional monetary stimulus as the economy is on track to meet this year’s growth target. 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, held at 3.5%. Both rates were last lowered by 10 basis points in May. The decision came after last week’s data showed that retail sales and industrial output growth in November eased amid lingering property sector crises. Meanwhile, new yuan loans came in below October levels and market expectations, highlighting continued weakness in credit demand.

The People’s Bank of China (PBoC) kept key lending rates at record lows for a sixth consecutive month in November, in line with market expectations. The move followed its decision to leave the seven-day reverse repo rate unchanged this month, now serving as the main policy rate, after the central bank signalled less urgency for additional monetary stimulus amid easing Sino-US trade tensions. 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, held at 3.5%. Both rates were last lowered by 10 basis points in May. The decision came after last week’s data showed that retail sales and industrial output growth eased to a 14-month low, while the October release revealed that Q3 GDP grew at the slowest pace since Q3 2024. Meanwhile, new yuan loans came in below market expectations, highlighting continued weakness in credit demand.