China keeps key lending rates steady in Dec amid policy continuity

The LPR framework reflects financing costs for businesses and serves as a key transmission channel for monetary policy. Although benchmark rates have remained unchanged since June 2025, borrowing costs in the real economy have continued to ease, as per Chinese media reports.

In November, the weighted average interest rate for newly issued corporate loans fell to 3.1 per cent, around 30 basis points lower than a year earlier.

China plans to adopt a more proactive fiscal stance together with a moderately loose monetary policy in 2026, as outlined at the Central Economic Work Conference held earlier this month.

ALCHEMPro News Desk (SG)