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China's loan prime rates remain unchanged

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China

China's loan prime rates remain unchanged

2025-03-20 10:26 Last Updated At:14:47

China's one-year loan prime rate (LPR), a market-based benchmark lending rate, came in at 3.1 percent Thursday, remaining unchanged from the previous month, the National Interbank Funding Center announced on Thursday.

The over-five-year LPR, on which many lenders base their mortgage rates, also remained unchanged from the previous reading of 3.6 percent, according to the center.

The LPRs reflect the level of financing costs for households and businesses, with lower rates meaning less burdens on borrowers and stronger support for economic activity.

In 2024, the People's Bank of China (PBOC), the central bank, guided the LPR downward while implementing two reductions in both the reserve requirement ratios (RRRs) and policy interest rates to help sustain economic recovery.

The latest official data show that the weighted average interest rate for new business loans fell to about 3.3 percent in February, down 40 basis points from a year earlier, while the rate for new personal mortgages dropped to around 3.1 percent, a decline of 70 basis points.

According to this year's government work report approved at an annual session of the National People's Congress earlier this month, China has decided to adopt a moderately loose monetary policy.

The central bank will cut RRRs and interest rates when appropriate this year, in line with domestic and international economic and financial conditions, as well as the performance of financial markets, PBOC governor Pan Gongsheng told a press conference in early March.

The average RRR for China's financial institutions now stands at 6.6 percent, offering room for further reduction, Pan said, adding that there is also room to lower the interest rates of structural monetary policy tools, which provide liquidity support to commercial banks.

China's loan prime rates remain unchanged

China's loan prime rates remain unchanged

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China's services trade reports solid growth in Q1

2025-04-29 10:43 Last Updated At:12:37

China's services trade saw steady growth in the first quarter of this year, reaching 1.974 trillion yuan (about 270.62 billion U.S. dollars), up 8.7 percent on a yearly basis, according to the data released by the Ministry of Commerce on Tuesday.

Services exports came in at 835.15 billion yuan (around 114.48 billion U.S. dollars), up 12.2 percent year on year, and services imports rose 6.2 percent to 1.139 trillion yuan (about 156.13 billion U.S. dollars), showed the data.

To be specific, trade in knowledge-intensive services rose 2.6 percent year on year to 752.49 billion yuan (roughly 103.15 billion U.S. dollars). In terms of the major items, other business services and telecommunications, computer and information services registered 320.48 billion yuan (about 43.93 billion U.S. dollars) and 262.34 billion yuan (around 35.96 billion U.S. dollars), rising 0.8 percent and 4.8 percent, respectively

Notably, trade in travel-related services registered the fastest growth. The total imports and exports grew 21.8 percent year on year to reach 584.9 billion yuan (roughly 80.18 billion U.S. dollars), with exports and imports increasing 97.5 percent and 14.9 percent, respectively.

China's services trade reports solid growth in Q1

China's services trade reports solid growth in Q1

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