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.

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.