China's one-year loan prime rate (LPR), a market-based benchmark lending rate, came in at 3.1 percent Monday, unchanged from the previous month.
The over-five-year LPR, on which many lenders base their mortgage rates, also remained unchanged from the previous reading of 3.6 percent, according to the National Interbank Funding Center.
The LPRs reflect the level of financing costs for households and businesses, with lower rates meaning less burdens on borrowers and stronger support for economic activity.
In 2024, China made three cuts to the LPR, with the one-year LPR falling from 3.45 percent to 3.1 percent, and the over-five-year LPR dropping from 4.2 percent to 3.6 percent, representing reductions of 35 and 60 basis points, respectively.
In March this year, the Monetary Policy Committee of the People's Bank of China (PBOC) convened its first-quarter meeting of 2025. The meeting discussed the main directions for the next stage's monetary policy and recommended increasing the intensity of monetary policy adjustments. It also proposed enhancing the foresight, precision, and effectiveness of monetary policy adjustments, with potential cuts to the required reserve ratio and interest rates based on evolving domestic and international economic and financial conditions and financial market dynamics.
China's loan prime rates remain unchanged
China's loan prime rates remain unchanged
