Key facts
- China's one-year Loan Prime Rate (LPR) remained at 3.00% in June.
- China's five-year LPR was unchanged at 3.50% in June.
- This marks the 13th consecutive month without a change to the LPR.
- All surveyed market participants anticipated no change to the rates.
China held its benchmark lending rates steady for the 13th month in a row in June, with the one-year Loan Prime Rate (LPR) remaining at 3.00% and the five-year LPR at 3.50%. This decision was widely anticipated by market participants, with all 30 surveyed expecting no change. The one-year LPR serves as the benchmark for most new and outstanding loans, while the five-year rate influences mortgage pricing. This move follows previous monetary easing measures, including LPR reductions and deposit rate cuts in prior months, aimed at supporting the economy amidst trade tensions and deflationary pressures. Analysts suggest that authorities may be conserving policy tools due to broader economic and political uncertainties, with a preference for liquidity injections over further rate cuts to protect bank net interest margins.