China Interest Rate

Last Release

Jul 22, 2024

Actual

3.35

Units In

3.45

Frequency

Daily

Next Release

N/A

Time to Release

N/A

Highest	Lowest	Average	Date Range	Source
5.77 Apr 2014	3.35 Jul 2024	4.29 %	2013-2024	People's Bank of China

The People’s Bank of China (PBOC) on August 17th, 2019, designated the Loan Prime Rate (LPR) the new lending benchmark for new bank loans to households and businesses, replacing the central bank’s benchmark one-year lending rate. The rate is based on a weighted average of lending rates from 18 commercial banks, which will submit their LPR quotations, based on what they have bid for PBOC liquidity in open market operations, to the national interbank funding center before 9am CST on the 20th of every month.

Latest Updates

The People's Bank of China slashed key lending rates to new record lows at the July fixing to help a fragile economic recovery. The one-year loan prime rate (LPR), the benchmark for most corporate and household loans, was cut by 10bps to 3.35%. The five-year rate, a reference for property mortgages, was also trimmed by the same margin to 3.85%. In early Monday, China's short-term interest rate, the seven-day reverse repo rate, was reduced to 1.7% from 1.8%, the first such cut in nearly a year, amid efforts to optimize open market operations and increase financial support. Bloomberg News said the seven-day rate could be the future benchmark policy rate as the PBoC recently signaled a shift toward the short-term rate to guide markets. This will reduce the importance of the existing 1-year benchmark, the medium-term lending facility rate. All of China's rate moves today followed last week's Third Plenum gathering, and weak Q2 GDP readings and mixed activity data in June.