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20.05.202601:00:00UTC+00China Holds 5-Year Loan Prime Rate at 3.50% in May, Signalling Policy Steadiness

China kept its 5-year Loan Prime Rate (LPR) unchanged at 3.50% in May 2026, matching the level set in April 2026. The decision, confirmed with data updated on 20 May 2026, indicates policy stability in a key benchmark that heavily influences mortgage and long-term corporate borrowing costs.

The steady 5-year LPR suggests no immediate shift in China’s interest-rate stance for longer-term lending, at a time when markets often look to this indicator for clues on support for the property sector and long-horizon investment. By maintaining the rate at 3.50% for a second consecutive month, authorities signal a preference to hold the line on borrowing costs rather than introduce further easing or tightening in May.

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