The People’s Bank of China (PBoC) kept its key lending rates unchanged for the third consecutive month in January, which was in line with market expectations.
PBoC holds rates, economic growth slows
The one-year loan prime rate (LPR), which serves as a benchmark for most corporate and household loans, remained at 3.1%, while the five-year LPR, used for property mortgages, was steady at 3.6%. Both rates are at historic lows following cuts in July and October of the previous year.
The latest decision comes amid renewed pressure on the yuan, which has limited the central bank's ability to ease monetary policy further. This is coupled with growing caution regarding potential shifts in US policies under the incoming Trump administration.
China's Q4 GDP grows 5.4%, full-year growth hits 5%
On the economic front, China’s GDP grew 5.4% year-on-year in Q4 2024, marking the fastest pace in 18 months, driven by stimulus measures introduced since September. The economy expanded by 5% for the entire year, meeting the official growth target, although it was a slowdown from the 5.2% growth in 2023.
