China keeps loan prime rates unchanged from Jan 2025

20 Feb '25

1 min read

China keeps loan prime rates unchanged from Jan 2025

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Insights

China's one-year loan prime rate (LPR) was today kept unchanged from last month at 3.1 per cent, according to the National Interbank Funding Centre.
The over-five-year LPR, on which many lenders base their mortgage rates, also remained unchanged from 3.6 per cent earlier.
The country has stepped up counter-cyclical adjustments in the face of downward pressure on the economy since last year.

China's one-year loan prime rate (LPR), a market-based benchmark lending rate, was today kept unchanged from last month at 3.1 per cent, according to the National Interbank Funding Centre.

The over-five-year LPR, on which many lenders base their mortgage rates, also remained unchanged from 3.6 per cent earlier, a state-controlled media outlet reported.

Despite being flat, the LPR saw cumulative drops of 35 basis points for the one-year rate and 60 basis points for the over-five-year rate last year, marking the largest annual reductions on record.

China has stepped up counter-cyclical adjustments in the face of downward pressure on the economy since last year.

It will further strengthen such adjustments by leveraging a range of monetary policy tools, including interest rates and the reserve requirement ratios, to maintain ample liquidity and ensure a supportive environment for social financing, said Xuan Changneng, deputy governor of the People's Bank of China told a press conference last month.

A PBOC report released earlier this month also highlighted the need for enhanced analysis and oversight of liquidity supply and demand within the banking system and financial markets.

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