China keeps loan prime rates unchanged

The over-five-year LPR, on which many lenders base their mortgage rates, also remained unchanged from the previous reading of 3.6 per cent, according to the National Interbank Funding Centre.

The LPR has dropped thrice this year, with the one-year rate down by 35 basis points (bps) in total and the five-year rate down by 60 bps.

The lower lending rate is expected to help relieve the financing burden on enterprises and individuals, thereby, stimulating business investment and strengthening consumers' purchasing power, a state-controlled news outlet reported

During last week's Central Economic Work Conference, Chinese policymakers decided to implement a moderately loose monetary policy in 2025.

The government will reduce the reserve requirement ratio and interest rates at an appropriate timing to ensure that the growth of social financing and money supply match the expected targets for economic growth and price levels.

ALCHEMPro News Desk (DS)