FX.co ★ China Holds LPR Rates at Record Lows for 11th Month

The People’s Bank of China kept its key lending rates at record lows for an 11th consecutive month in April 2026, in line with market expectations. The decision underscores policymakers’ caution about potential economic fallout from the war in the Middle East, even as domestic deflationary pressures ease and early-year growth remains resilient. The one-year loan prime rate (LPR)—the benchmark for most corporate and household borrowing—was left unchanged at 3.0%, while the five-year LPR, the main reference for mortgage rates, stayed at 3.5%. In the first quarter of 2026, China’s economy grew by 5%, up from 4.5% in the final quarter of 2025, placing it at the upper end of Beijing’s full-year growth target range. Authorities have reduced that target to 4.5%–5%, the least ambitious since the 1990s. At the same time, the central bank has reiterated that monetary policy will remain “supportive” and “moderately loose” to bolster economic activity while preserving currency stability.