21.04.202501:18:13UTC+00China Keeps LPR Rate Steady for 6th Month

The People's Bank of China (PBoC) decided to maintain its key lending rates for the sixth straight month in April, a move that was in line with market forecasts. This decision comes as the yuan faces pressure from intensifying trade disputes with the United States. Specifically, the one-year loan prime rate (LPR), which serves as a benchmark for the majority of corporate and household loans, remained steady at 3.1%. Similarly, the five-year LPR, a crucial figure for property mortgages, was kept at 3.6%. These rates continue to be at their historic lows following reductions in October and July of the previous year. The PBoC's decision follows an unexpected 5.4% year-on-year GDP growth in the first quarter of 2025, marking the fastest growth observed in the past eighteen months amid Beijing's ongoing economic stimulus measures. The Chinese government is prioritizing the stimulation of domestic consumption, demonstrated by their commitment of an additional CNY 300 billion in ultra-long special treasury bonds to support a consumer goods trade initiative.