China Holds 1-Year LPR at 3% and 5-Year-Plus Rate at 3.5% in May
Updated
Updated · Xinhua · May 20
China Holds 1-Year LPR at 3% and 5-Year-Plus Rate at 3.5% in May
3 articles · Updated · Xinhua · May 20
China left its benchmark lending rates unchanged in May, keeping the one-year loan prime rate at 3% and the over-five-year LPR—used for many mortgages—at 3.5%.
The decision keeps borrowing costs broadly low for households and businesses, with the LPR serving as a key reference for corporate and consumer lending.
April data showed newly issued corporate loans carried an average rate of about 3.1%, down 20 basis points from a year earlier, while new personal housing loans also averaged 3.1%, down 6 basis points.
Beijing has said it will maintain a more proactive fiscal stance and an appropriately accommodative monetary policy in 2026, signaling continued support for investment and consumption.
With property prices at a 20-year low, are China's record-low rates preventing a 'balance sheet recession' or just delaying it?
As China's exports pivot to the Global South, is a new economic order emerging from the US-China trade war?