China's central bank leaves key lending rates unchanged

20th Nov 2025 09:01

(Sharecast News) - China's central bank left two key benchmark lending rates on hold on Thursday, as widely expected.

The People's Bank of China kept the one-year loan prime rate on hold at 3%, while the five-year rate - the benchmark for mortgage lending - was unchanged at 3.5%.

It is the sixth consecutive month the PBOC has left the two rates on hold. It last reduced both by 10 basis points in May, following a 25bps reduction in October 2024.

The Chinese economy has endured a bumpy ride in recent years, hit hard by the prolonged slump in its once red-hot property sector, a fall in global demand post Covid and sluggish domestic consumption.

Tensions between Beijing and Washington also ramped up on the back of Donald Trump's swingeing tariff policies.

Growth had started to pick up during the first half, however, supported by a range of government measures.

There has also been progress in trade talks with the US, helping to ease tensions.

However, data last week showed both retail sales and industrial output had fallen to a 14-month low. GDP growth also slowed in the third-quarter.