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Economic Buzz: China keeps lending rates unchanged, signals cautious policy path
24-Feb-2026 11:51
China's central bank kept its benchmark lending rates unchanged for a ninth consecutive month in February, in line with market expectations. The one-year loan prime rate was held at 3.0%, while the five-year rate, which guides mortgage lending, remained at 3.5%. The decision reflects a cautious policy approach as authorities balance the need to support growth with financial stability concerns. While China achieved its roughly 5% growth target in 2025 on strong exports, weak domestic demand, industrial overcapacity, trade tensions, and geopolitical uncertainty continue to weigh on the outlook. Policymakers have signaled targeted support measures and left room for further easing later in the year if conditions require.

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