All news

China keeps annual base rate for coming month flat at 3%

It also left the rate unchanged for five-year loans at 3.5%

BEIJING, January 20. /TASS/. The People's Bank of China has kept the rate of one-year loans for first-class borrowers (Loan Prime Rate, LPR) flat at 3% for the next month.

It also left the rate unchanged for five-year loans at 3.5%.

A decrease in the LPR, adjusted on the 20th of each month, leads to a change in the cost of loans for companies and consumers. With the help of this tool the central bank can boost market activity and stimulate the economy.

The LPR affects loan repayments. Over the past 12 months, the annual rate changed only once - in May, with a decrease of 0.1 percentage point.

The interest on five-year debt determines the mortgage cost. In 2025, it also changed only once - in May, falling by 0.1 percentage point.

The LPR regulation mechanism in China was changed in August 2019. It is determined monthly by the All-China Interbank Lending Center after 18 key commercial banks in the country individually provide it with their estimated interest rates for the coming month. First-class borrowers are enterprises with a stable financial condition and a high rating.

Tags