China Keeps Interest Rates Steady to Support Economic Activity
The People’s Bank of China (PBoC) decided to keep its key lending rates unchanged in its latest move to maintain financial stability and support growth. The one-year Loan Prime Rate (LPR) was held at 3%, while the five-year LPR, a benchmark widely used for mortgage lending, remained at 3.5%.
According to the National Interbank Funding Center, this decision reflects the central bank’s commitment to ensuring stable borrowing costs and encouraging households and businesses to access credit at affordable rates.
State news agency Xinhua reported that keeping interest rates low is aimed at easing the financial burden on borrowers and strengthening economic momentum. Recent data showed that the average weighted interest rate on new corporate loans in China fell to around 3.2% in July, down by 45 basis points from a year earlier. Meanwhile, the rate on new personal mortgage loans dropped to around 3.1%, marking a decline of 30 basis points.
China’s government has pledged to pursue a moderately accommodative monetary policy throughout 2025, according to this year’s official work report, striking a balance between stimulating growth and safeguarding financial stability.
