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China Leaves Benchmark Lending Rates Unchanged for Ninth Straight ...
The People's Bank of China maintained 1-year and 5-year loan prime rates at 3% and 3.5% to support a slowing economy while permitting gradual yuan appreciation, economists said.
- On Tuesday, the People's Bank of China held its 1-year loan prime rate at 3% and 5-year loan prime rate at 3.5%, keeping them unchanged for a tenth straight month.
- Policymakers are balancing support for a slowing, deflation-prone economy with maintaining currency stability while promoting services like elderly care, leisure, and tourism to offset weak goods demand.
- The yuan has appreciated, with offshore yuan levels rising from around 6.974 to 6.889 and the PBOC fixing dipping below the 7 benchmark within a 2% band.
- Holding the LPRs affects borrowing costs as the 1-year rate benchmarks most loans and the 5-year influences mortgages, while a stronger yuan could test exporters facing U.S. tariffs, the PBOC warned.
- Looking at macro data, China recorded a 4.5% GDP slowdown last year, retail sales at 0.9%, and a negative GDP deflator for 11 quarters, with risks from prolonged price weakness.
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China freezes Loan Preferential Rate (LPR) for 9th consecutive month, keeping 1-year LPR at 3% and 5-year LPR at 3.5%, with a low possibility of a rate cut in the first quarter. China froze its Loan Preferential Rate (LPR) for 9th consecutive month on the 24th. Last month, China implemented rate cuts and loan limit increases targeting rural areas, small businesses, and the science and technology sectors, and for the time being,
Coverage Details
Total News Sources14
Leaning Left2Leaning Right2Center4Last UpdatedBias Distribution50% Center
Bias Distribution
- 50% of the sources are Center
50% Center
L 25%
C 50%
R 25%
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