China’s People’s Bank of China (PBOC) held its Loan Prime Rates (LPR) steady in November, signaling a cautious approach amid persistent economic challenges. The one-year LPR remained at 3.45%, and the five-year LPR, critical for mortgage pricing, stayed at 4.20%, aligning with market expectations. This decision reflects the central bank’s effort to maintain economic stability without further loosening monetary policy.
The unchanged rates come as the PBOC balances growth concerns against rising inflationary pressures and global economic uncertainties. While some analysts anticipated potential easing to support sluggish domestic demand, the central bank’s move underscores a wait-and-see approach. Markets now turn their focus to other policy tools the PBOC may deploy to steer economic recovery.
