China has held its key loan prime rates (LPR) steady for the month of October, keeping the one-year LPR at 3.1% and the over-five-year LPR at 3.6%. The one-year LPR serves as a crucial benchmark for market-based lending, while the over-five-year LPR often influences mortgage rates.
Bruce Pang, chief economist at JLL Greater China, noted that there is no urgent need to adjust the LPR at this time. “China continues to evaluate the impact of its targeted policy measures,” Pang said, indicating a cautious but calculated approach to economic stabilization.
Since late September, the country has introduced a range of policies aimed at bolstering the economy. These include monetary easing, fiscal incentives, and initiatives to support the property market.
While the decision to keep the LPR unchanged suggests stability in the near term, Pang hinted at the possibility of adjustments in the future. “Another policy rate cut before the end of the year seems unlikely, but there remains potential for interest rate cuts in 2025,” he explained. The outlook is influenced by China’s 2025 economic and social development goals, current price levels, and the recovery progress of the property market.
Reference(s):
cgtn.com
