The People's Bank of China (PBoC) maintained its key lending rates steady for the ninth straight month at the May fixing, as widely expected. The one-year loan prime rate (LPR), which is the medium-term lending facility used for corporate and household loans, was left unchanged at 3.65%; while the five-year rate, a reference for mortgages, was kept at 4.3%. The move came after the central bank held its medium-term policy rate at 2.75% last week. Also, the yuan weakened past the key threshold of 7 in both onshore and offshore trading after data showed factory output, retail sales, and fixed-asset investment all grew at a slower pace in April than economists forecast. At the same time, the yield gap between China's benchmark 10-year government bonds and their US counterparts is hovering at the widest level in two months.. source: People's Bank of China
Interest Rate in China averaged 4.37 percent from 2013 until 2023, reaching an all time high of 5.77 percent in April of 2014 and a record low of 3.65 percent in August of 2022. This page provides the latest reported value for - China Interest Rate - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news. China Loan Prime Rate - data, historical chart, forecasts and calendar of releases - was last updated on June of 2023.
Interest Rate in China is expected to be 3.65 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. In the long-term, the China Loan Prime Rate is projected to trend around 3.45 percent in 2024 and 3.50 percent in 2025, according to our econometric models.
China Loan Prime Rate
The People’s Bank of China (PBOC) on August 17th, 2019, designated the Loan Prime Rate (LPR) the new lending benchmark for new bank loans to households and businesses, replacing the central bank’s benchmark one-year lending rate. The rate is based on a weighted average of lending rates from 18 commercial banks, which will submit their LPR quotations, based on what they have bid for PBOC liquidity in open market operations, to the national interbank funding center before 9am CST on the 20th of every month.
| Actual | Previous | Highest | Lowest | Dates | Unit | Frequency | ||
|---|---|---|---|---|---|---|---|---|
| 3.65 | 3.65 | 5.77 | 3.65 | 2013 - 2023 | percent | Daily |
News Stream
China Holds LPR Rate Steady for 9th Month
The People's Bank of China (PBoC) maintained its key lending rates steady for the ninth straight month at the May fixing, as widely expected. The one-year loan prime rate (LPR), which is the medium-term lending facility used for corporate and household loans, was left unchanged at 3.65%; while the five-year rate, a reference for mortgages, was kept at 4.3%. The move came after the central bank held its medium-term policy rate at 2.75% last week. Also, the yuan weakened past the key threshold of 7 in both onshore and offshore trading after data showed factory output, retail sales, and fixed-asset investment all grew at a slower pace in April than economists forecast. At the same time, the yield gap between China's benchmark 10-year government bonds and their US counterparts is hovering at the widest level in two months.
2023-05-22
China Keeps LPR Rate Steady for 8th Month
The People's Bank of China (PBoC) left its key lending rates steady for the eighth straight month at April fixing, as the economic recovery has returned on track after the withdrawal of most anti-COVID measures last December. The one-year loan prime rate (LPR), which the medium-term lending facility uses for corporate and household loans, was kept unchanged at 3.65%; while the five-year rate, a reference for mortgages, was maintained at 4.3%. The move came after the central bank held its medium-term policy rate at 2.75% earlier in the week. The board continued to bolster liquidity support as it rolled over maturing medium-term policy loans with higher cash offerings for the fifth month in April. China's economy expanded 4.5% yoy in the first quarter of 2023, accelerating from a 2.9% gain in the fourth quarter. The GDP growth reading was the strongest since the first quarter of 2022 and beat market estimates of 4%. China last cut both LPRs in August.
2023-04-20
China Holds LPR Rate Steady for 7th Month
The People's Bank of China (PBoC) kept its key lending rates steady for the seventh straight month at March fixing, as widely expected. The one-year loan prime rate (LPR), which the medium-term lending facility uses for corporate and household loans, was left unchanged at 3.65%; while the five-year rate, a reference for mortgages, was maintained at 4.3%. The move came after the central bank last week held its medium-term policy rate at 2.75%. PBoC's governor Yi Gang said earlier this month that the current interest rate level is "appropriate" while adding that efforts to unleash long-term funds for banks were needed. On March 17th, the central bank cut the reserve requirement ratio for financial institutions by 25bps, effective from March 27th, marking the first rate cut in banks' reserve ratio since December and in line with market expectations, in a move from policymakers to further shore up the country's economic recovery.
2023-03-20
