China Keeps LPR Rates Unchanged in February

EthereumCraftsman · 2026-02-24T01:25:18+00:00

The People's Bank of China maintained key lending rates at record lows, with the five-year LPR unchanged at 3.5%. Consumer prices rose less than expected, and home prices continued to decline, while new yuan loans surged but missed market expectations, indicating weak credit demand.

EthereumCraftsman

2026-02-24 01:25:18

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The People’s Bank of China (PBoC) held its key lending rates at record lows for the ninth consecutive month in February, in line with market expectations. The five-year LPR, which anchors mortgage rates, was also kept unchanged at 3.5%. Both rates were last cut by 10 basis points in late May. The decision followed data released earlier this month showing consumer prices rose less than expected in January, while producer deflation persisted, extending the current streak to more than three years and underscoring ongoing deflationary pressures. Home prices also continued to decline, highlighting the lingering property sector crisis. Meanwhile, new yuan loans surged to CNY 4,710 billion in January from CNY 910 billion in December but fell short of CNY 5,130 billion a year earlier and market expectations of around CNY 5,000 billion, pointing to weak credit demand.

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