China keeps benchmark lending rates steady as PBOC prioritizes financial stability

China decided to keep its key lending rates unchanged, with the 1-year loan prime rate at 3.1% and the 5-year LPR at 3.6%, prioritizing financial stability over interest rate easing to support the economy. PBOC Governor Pan Gongsheng emphasized the importance of a stable yuan for global financial stability and China’s focus on consumption, amid downward pressure on the currency due to threats of higher tariffs and a fragile consumer demand. Since Trump’s inauguration, tariffs on Chinese imports have increased, impacting the economy and complicating efforts to stimulate growth.

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