China maintains key lending rates steady even as economic expansion slows

China Maintains Loan Prime Rates Amid Economic Slowdown

The People’s Bank of China opted to leave its key lending rates unchanged on Tuesday, signaling a preference for targeted measures to support select industries rather than implementing broad monetary easing. Both the 1-year and 5-year loan prime rates remained steady at 3% and 3.5%, respectively, marking the eighth consecutive month without change. The 1-year rate primarily impacts most new and existing loans, while the 5-year rate is closely tied to mortgage lending.

This decision comes as China, the world’s second-largest economy, experienced a slowdown in the last quarter of 2025, posting a 4.5% annual growth rate—its weakest performance in recent quarters.