China maintains benchmark lending rates at record lows, aligning with forecasts

By Tuba Ongun

The People’s Bank of China held its benchmark lending rates constant for the fifth consecutive time on Thursday, in line with market expectations.

The one-year loan prime rate, a crucial reference for corporate and household loans, was maintained at 3.10%. Similarly, the five-year rate, a key indicator for mortgage rates, remained unchanged at 3.6%.

Both rates have remained at these historic lows since a quarter percentage point cut in October.

The decision followed the US Federal Reserve’s widely anticipated move to hold rates steady on Wednesday, coupled with its projection of a 0.5% rate reduction by 2025.

After the Chinese bank's announcement, the yuan showed little movement, trading at around 7.23 against the US dollar.