China's Loan Prime Rates Remain Unchanged

BEIJING, Jan 20 (Bernama-Xinhua) -- China's one-year loan prime rate (LPR), a market-based benchmark lending rate, came in at 3 per cent Tuesday, unchanged from the previous month, reported Xinhua.

The over-five-year LPR, on which many lenders base their mortgage rates, also remained unchanged from the previous reading of 3.5 per cent, according to the National Interbank Funding Centre. 

LPRs reflect the level of financing costs for households and businesses. Lower rates will ease the burden on borrowers, leading to more investment and consumption. Interest rates on newly issued loans in China have stayed at relatively low levels.

Latest data shows that in December, the weighted average interest rates for new corporate loans and new personal housing loans were both at around 3.1 per cent, down by 2.5 percentage points and 2.6 percentage points, respectively, since the second half of 2018.

China will maintain a more proactive fiscal policy and a moderately loose monetary policy in 2026, according to the Central Economic Work Conference held last December.

--BERNAMA-XINHUA