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Lpr

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China holds key lending rates steady amid cautious growth outlook
business1 month ago

China holds key lending rates steady amid cautious growth outlook

The People’s Bank of China kept the one-year LPR at 3.0% and the five-year LPR at 3.5%, marking an 11th consecutive month with no change as policymakers weigh external risks from Middle East tensions and higher energy prices against resilient domestic growth and easing deflation. With Q1 growth around 5% and inflation firming, authorities signal a wait‑and‑see approach, aiming to support growth while maintaining currency stability and a moderately loose policy stance.

China Maintains Key LPRs Amid Slower Growth, Bets on Targeted Support
business4 months ago

China Maintains Key LPRs Amid Slower Growth, Bets on Targeted Support

China’s central bank left the 1-year and 5-year loan prime rates at 3% and 3.5% for an eighth straight month as growth slows to 4.5% in Q4 2025; authorities emphasize targeted support over broad easing, with moves to lower funding costs for relending facilities, expand loans to private firms and tech sectors, and lower the minimum down payment on commercial mortgages to 30% to bolster a weak domestic demand and persistent deflation.