Loan Interest Rates Remained Unchanged and Stable in China
China's benchmark lending rates for banks were left unchanged at their current levels in line with expectations.
According to dividend announcements released by the National Interbank Funding Center of China, the 1-year and 5-year loan interest rates were kept stable.
Current Status of Interest Rates
The National Interbank Funding Center of China announced that it kept the 1-year loan interest rate stable at 3 percent and the 5-year loan interest rate at 3.5 percent.
Determination Process of LPR Rates
These rates are determined based on dividend announcements added by 18 banks in the country on top of the borrowing rate of the People's Bank of China, and have been functioning as the benchmark interest rate since 2019.
Maturity Types Referenced for Loans
In the regulations made, the 1-year maturity loan interest rate is taken as the basis for corporate loans, while the 5-year interest rate is accepted as a reference for real estate loans.
Past Period Interest Rate Cuts
Loan interest rates were last reduced by 10 basis points each in May 2025, with the 1-year rate being pulled down from 3.1 percent to 3 percent and the 5-year rate from 3.6 percent to 3.5 percent.
Long-Standing Stable Trend
With the latest evaluations carried out, it was reported that the loan interest rates in China have been kept at the same level uninterruptedly for 16 months.