China Interest Rate

Last Release

Dec 20, 2024

Actual

3.1

Units In

3.1

Frequency

Daily

Next Release

N/A

Time to Release

N/A

Highest	Lowest	Average	Date Range	Source
5.77 Apr 2014	3.1 Oct 2024	4.29 %	2013-2024	People's Bank of China

The People’s Bank of China (PBOC) on August 17th, 2019, designated the Loan Prime Rate (LPR) the new lending benchmark for new bank loans to households and businesses, replacing the central bank’s benchmark one-year lending rate. The rate is based on a weighted average of lending rates from 18 commercial banks, which will submit their LPR quotations, based on what they have bid for PBOC liquidity in open market operations, to the national interbank funding center before 9am CST on the 20th of every month.

Latest Updates

The People’s Bank of China (PBoC) maintained its key lending rates steady for the second straight month at December fixing, aligning with market estimates. The one-year loan prime rate (LPR), the benchmark for most corporate and household loans, was held at 3.1%. Meanwhile, the five-year rate, a reference for property mortgages, was unchanged at 3.6%. Both rates remain at record lows following rate reductions in October and July. The latest decision followed a pledge from Chinese leaders in early December to increase the 2025 budget deficit to 4% of GDP, the highest on record, to spur an economic turnaround and stimulate consumption. They also vowed to shift monetary policy to a "moderately loose" stance next year, moving away from the current "prudent" approach to address the mounting challenges in the economy. A PBoC official recently indicated that the central bank sees more room to further reduce the RRR from the current average level of 6.6%.