The People’s Bank of China (PBoC) kept its benchmark lending rates unchanged for a ninth straight month in February, in line with market expectations. The decision suggests policymakers are in no hurry to implement broad-based monetary easing following a series of recent targeted measures. The one-year loan prime rate (LPR) was maintained at 3.0%, while the five-year LPR, the key benchmark for mortgage lending, stayed at 3.5%.
This steady policy stance reflects authorities’ effort to balance supporting economic growth with containing financial stability risks. China achieved its roughly 5% growth target in 2025, aided by robust export performance, but the outlook remains clouded by structural imbalances, ongoing trade frictions, and rising geopolitical uncertainty.
Earlier this month, the central bank reiterated its commitment to strengthening financial support for the real economy in order to bolster domestic demand, as industrial overcapacity and subdued consumer spending continue to weigh on business confidence. At the same time, the PBoC indicated there is still scope for further reductions in the reserve requirement ratio and for broader monetary easing later this year.
