By The People’s Bank of China (PBOC) announced on February 20, 2025, that it would maintain the Loan Prime Rate (LPR) at current levels. The one-year LPR remains at 3.45%, while the five-year LPR stays at 4.20%.
This decision reflects China’s cautious monetary policy stance as the economy continues to recover. Despite a 5.2% GDP growth rate in 2024, challenges in the property sector and weak consumer demand remain key concerns.
“Maintaining the LPR steady is a prudent move,” said Zhang Ming, an economist at CICC. “It provides stability while leaving room for future adjustments if needed.”
Global markets showed mixed reactions, with Asian stocks fluctuating and the yuan remaining stable. Investors are now focused on the upcoming National People’s Congress for further policy direction.