China: Central Bank keeps prime lending rates for 1- and 5-year loans unchanged

The People’s Bank of China kept its benchmark lending rates unchanged in June, despite signs of a slowdown in domestic demand. The central bank confirmed the one-year Loan Prime Rate – the benchmark for most loans to businesses and households – at 3.0 per cent, and the five-year Loan Prime Rate – the benchmark for mortgages – at 3.5 per cent, levels at which both rates have stood since May 2025. The central bank has therefore opted for a cautious approach whilst the economy shows mixed signals. The People’s Bank of China’s decision follows the 10-basis-point cut implemented in May 2025, the last adjustment to benchmark rates.

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