China kept benchmark loan prime rates unchanged for a seventh consecutive month, in line with expectations. The one-year loan prime rate was held at 3.0%, while the over-five-year LPR, a key reference for mortgage pricing, remained at 3.5%.
The decision reinforces the view that near-term monetary easing is not a priority. While lower LPRs would help reduce financing costs and support investment and consumption, authorities appear comfortable maintaining current settings as they assess the impact of earlier stimulus and targeted support measures across the economy.
Nevertheless, policy guidance from the Central Economic Work Conference earlier points to a broader strategic tilt. Officials signaled that China will pursue a more proactive fiscal stance alongside a moderately loose monetary policy in 2026, suggesting growth support will increasingly come from government spending and structural measures rather than immediate rate cuts.
