On February 20, 2025, the People’s Bank of China (PBOC) announced that it would keep the Loan Prime Rate (LPR) unchanged. The one-year LPR remains at 3.45%, and the five-year LPR stays at 4.20%.
This decision comes as China’s economy shows mixed signals, with a 5.2% GDP growth rate in 2024 but ongoing challenges in the property sector and weak consumer demand.
“The steady LPR reflects the PBOC’s balanced approach,” said Chen Xue, an analyst at Huatai Securities. “It supports growth while avoiding overstimulation.”
Global markets reacted cautiously, with Asian stocks trading mixed and the yuan holding steady. Investors are now looking to the National People’s Congress in March for further policy clarity.
