China Holds 1-Year LPR at 3.00% for 13th Month as Credit Demand Stays Weak
Updated
Updated · Reuters · Jun 22
China Holds 1-Year LPR at 3.00% for 13th Month as Credit Demand Stays Weak
3 articles · Updated · Reuters · Jun 22
Summary
China left its benchmark loan prime rates unchanged in June, keeping the one-year LPR at 3.00% and the five-year LPR at 3.50% for a 13th straight month.
All 30 participants in a Reuters survey had expected no move, underscoring that policymakers see little need for immediate easing despite slowing credit growth.
Recent data point to a two-speed economy: exports and factory activity have held up, while domestic demand remains weak under a prolonged property downturn.
PBOC Governor Pan Gongsheng said slower loan growth reflects deeper economic restructuring as bond and equity financing gain traction, while analysts expect only incremental support unless growth slips below the 4.5%-5.0% target.