Financial News: China Holds Loan Prime Rates As Expected

China Holds Loan Prime Rates As Expected

02/20/2025 - 01:50:00 (RTTNews)

(RTTNews) - The People's Bank of China maintained its interest rates unchanged for the fourth straight time on Thursday.

The PBoC left its one-year loan prime rate unchanged at 3.10 percent. Likewise, the five-year LPR, the benchmark for mortgage rates, was retained at 3.60 percent. The decision matched expectations.

The bank had reduced its both LPRs by 25 basis points each in October 2024.

The PBoC fixes the LPR monthly based on the submission of 18 designated banks. However, Beijing has influence over the fixing. The LPR replaced the traditional benchmark lending rate in August 2019.

Data released this month showed that bank lending surged to a record CNY 5.1 trillion in January but largely due to the season factor. Lending usually remains the strongest at the start of the year.

Earlier, Capital Economics said given the pressures on bank profitability, the PBoC is likely to prioritize lowering reserve requirements before proceeding with more rate cuts.

The firm said the central bank will avoid a rate cut that could trigger additional depreciation of the currency amid trade tariff threats.

For comments and feedback: contact editorial@rttnews.com

Market News provided by RTTNews

RECENT INTERNATIONAL FINANCIAL NEWS

Moldova GDP Falls Further In Q4 (50 min(s), 25 sec(s) ago)
(RTTNews) - The Moldovan economy shrunk for a second straight quarter in the final three months of ...Full Story»

Croatia Prices Rise More Than Expected In February (01 hr(s), 10 min(s), 25 sec(s) ago)
(RTTNews) - Consumer prices in Croatia rose more than initially expected in February, but the rate ...Full Story»

U.S. Business Inventories Rise In Line With Estimates In January (01 hr(s), 54 min(s), 25 sec(s) ago)
(RTTNews) - Business inventories in the U.S. increased in line with economist estimates in the mon ...Full Story»

U.S. Homebuilder Confidence Slumps To Seven-Month Low In March (02 hr(s), 29 min(s), 25 sec(s) ago)
(RTTNews) - A report released by the National Association of Home Builders on Monday showed a cont ...Full Story»

New York Manufacturing Activity Drops Significantly In March (02 hr(s), 45 min(s), 25 sec(s) ago)
(RTTNews) - The Federal Reserve Bank of New York released a report on Monday showing regional manu ...Full Story»

U.S. Retail Sales Rebound In February But Much Less Than Expected (02 hr(s), 48 min(s), 25 sec(s) ago)
(RTTNews) - After reporting a notable decrease by U.S. retail sales in the previous month, the Com ...Full Story»

Bulgaria Inflation Rises To 4.0%, Highest In 14 Months (03 hr(s), 52 min(s), 25 sec(s) ago)
(RTTNews) - Bulgaria's consumer price inflation accelerated further in February to the highest ...Full Story»

New York Manufacturing Index Plunges Much More Than Expected In March (04 hr(s), 19 min(s), 25 sec(s) ago)
(RTTNews) - The Federal Reserve Bank of New York released a report on Monday showing regional manu ...Full Story»