China keeps benchmark lending rates constant as expected

By Tuba Ongun

The People’s Bank of China on Friday left its benchmark lending rates unchanged for a second consecutive meeting, in line with market expectations.

The one-year loan prime rate (LPR), a key metric for corporate and household loans, remained steady at 3.10%.

Similarly, the five-year LPR, which serves as a benchmark for mortgages, stayed at 3.6%.

Both rates remain at record lows, following earlier reductions in July and October.

The decision comes in the wake of the US Federal Reserve’s widely anticipated 25-basis-point rate cut on Wednesday. The Fed also signaled plans for only two interest rate reductions in 2025, down from the four projected in its September outlook.

Earlier this month, Chinese policymakers at key economic agenda-setting meetings reaffirmed their commitment to further monetary easing. They pledged additional measures, including potential interest rate cuts, to stimulate economic growth.