China’s central bank, the People’s Bank of China (PBOC), announced on February 20, 2025, that it would maintain the Loan Prime Rate (LPR) at current levels. The one-year LPR remains at 3.45%, and the five-year LPR stays at 4.20%.
This decision underscores Beijing’s focus on economic stabilization as the economy shows signs of recovery. Despite a 5.2% GDP growth rate in 2024, challenges in the property sector and weak consumer demand remain key concerns.
“The steady LPR decision is a sign of confidence in the economy’s recovery,” said Wang Tao, an economist at UBS. “However, the PBOC may consider further easing if growth falters.”
Global markets reacted cautiously, with Asian stocks trading mixed and the yuan holding steady. Investors are now awaiting policy signals from the National People’s Congress in March.
