China keeps benchmark lending rates unchanged despite slowing economic growth
CNBC • • business
Key Points:
- China's central bank kept its 1-year and 5-year loan prime rates steady at 3% and 3.5%, respectively, marking the eighth consecutive month without change as authorities prioritize targeted sector support over broad policy easing.
- The economy grew 4.5% year-on-year in Q4 2025, the slowest pace since the post-Covid reopening, with nominal GDP growth at 3.8%, the lowest in 50 years excluding 2020, amid persistent deflation and weak retail sales.
- Policymakers plan to continue proactive fiscal measures and moderately loose monetary policy, including reducing interest rates on relending facilities for small businesses and lowering mortgage down-payment requirements to stimulate the real estate market.
- New bank
