China Holds Key Rates As Expected

(RTTNews) - China held its benchmark interest rates steady for the thirteenth straight month, as widely expected, on Monday.

The People's Bank of China left its one-year loan prime rate unchanged at 3.0 percent. Similarly, the five-year LPR, the benchmark for mortgage rates, was retained at 3.50 percent.

Previously, the bank had reduced its both LPRs by quarter points in October 2024 and 10 basis points each in May 2025.

Recent economic data presents a mixed picture for China's economy. Industrial production growth strengthened in May, supported by robust exports. Meanwhile, retail sales declined for the first time since 2022, and fixed asset investment declined further. Property investment continues to weigh on overall economic growth.

Beijing targets to achieve around 4.5-5 percent economic growth this year. The International Monetary Fund has forecast China's economy to grow 4.4 percent this year and 4.0 percent in 2027.