[Breaking] People's Bank of China Effectively Holds Benchmark Rate LPR Steady

China's central bank, the People's Bank of China, announced on the 22nd that it will keep the loan prime rate (LPR), which is effectively the benchmark interest rate, unchanged at 3.95% per annum for the 5-year term and 3.45% per annum for the 1-year term. This aligns with market experts' expectations.

The LPR is calculated by aggregating the lending rates offered to the best customers by 18 designated banks. Local financial institutions use this as a reference for lending, making it the de facto benchmark interest rate in China. The 1-year rate affects general loans, while the 5-year rate influences mortgage loans.