20.08.202501:06:27UTC+00China Keeps LPR Rates Steady for Third Month

The People's Bank of China (PBOC) has opted to keep key lending rates at historically low levels for the third consecutive month, aligning with market predictions. This decision was taken even as recent economic figures indicate that the economy may be losing steam. The one-year Loan Prime Rate (LPR), which serves as the benchmark for most corporate and household loans, remained at 3.0%. Similarly, the five-year LPR, which influences mortgage rates, stayed at 3.5%. Data from the past week highlighted that industrial output in July experienced its slowest growth rate in eight months, while retail sales recorded their weakest performance since December 2024. Additionally, for the first time in 20 years, new yuan loans decreased significantly, falling short of analysts' projections, though there was some improvement in broader credit growth. The central bank’s latest quarterly monetary policy implementation report affirmed its commitment to continue applying and adjusting a moderately loose monetary policy.