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Economic Buzz: China keeps benchmark lending rates unchanged
20-Jun-2025 09:38
China kept its benchmark lending rates unchanged Friday, following sweeping monetary easing measures rolled out last month, and as a trade deal with the U.S. eases some growth concerns.

The one-year loan prime rate (LPR) was kept at 3.00%, while the five-year LPR was unchanged at 3.50%.

Last month, Chinese authorities cut the lending rates for the first time since October by 10 basis points, in their bid to cushion the impact from trade tensions with Washington. A slew of commercial banks also trimmed their deposit rates to protect their net interest margin.

LPR, normally charged to banks' best clients, is calculated based on a survey of dozens of designated commercial banks that submit proposed rates to the central bank.

The 1-year LPR influences corporate and most household loans in China, while the 5-year LPR serves as a benchmark for mortgage rates.

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