Financial News: China Keeps Loan Prime Rates Unchanged

China Keeps Loan Prime Rates Unchanged

05/20/2026 - 01:08:00 (RTTNews)

(RTTNews) - China maintained its loan prime rates unchanged for the twelfth straight month, as widely expected, on Wednesday.

The People's Bank of China maintained its one-year loan prime rate at 3.0 percent. Similarly, the five-year LPR, the benchmark for mortgage rates, was retained at 3.50 percent.

Previously, the bank had reduced its both LPRs by quarter points in October 2024 and 10 basis points each in May 2025.

The central bank sets the LPR monthly based on the submissions of 20 designated banks, though Beijing has influence over the fixing. The LPR replaced the traditional benchmark lending rate in August 2019.

Recent economic indicators point to a slowdown in the second quarter as ongoing Middle East conflict strain supply chains and push energy prices higher.

Weaker retail sales and the fall in fixed asset investment suggest that additional stimulus measures may be necessary to achieve targeted growth.

Beijing targets around 4.5-5 percent economic growth this year. The International Monetary Fund has forecast China's economy to grow 4.4 percent this year and 4.0 percent in 2027.

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