China holds loan prime rates steady as borrowing costs ease

China’s one-year loan prime rate (LPR), the key market-driven benchmark for lending, was kept at 3 per cent, unchanged from the previous month. The over-five-year LPR, which serves as the reference for most mortgage rates, also held steady at 3.5 per cent, according to National Interbank Funding Center.

The weighted average interest rate on new corporate loans declined to about 3.2 per cent in July, down 45 basis points from a year ago. Similarly, the average rate for new home mortgages eased to around 3.1 per cent, marking a 30-basis-point drop.

China kept its one-year loan prime rate at 3 per cent and the five-year rate at 3.5 per cent, as per the National Interbank Funding Center.
In July, average interest rates on new corporate loans fell to 3.2 per cent, while new mortgage rates eased to 3.1 per cent.
The 2025 government work report reiterated a moderately loose monetary policy to bolster economic growth.

China’s 2025 government work report reaffirmed its commitment to pursuing a moderately loose monetary policy to support economic activity.

Fibre2Fashion News Desk (SG)