The People's Bank of China held steady its key rates for corporate and household loans at May fixing, but slashed the mortgage reference rate for the second time this year, amid a slowdown in the Chinese economy due to worst COVID-19 outbreak in more than two years, a property crisis, and weak loan demand. The one-year LPR was kept unchanged at 3.7% after cuts of 5 and 10 bps in December and January, while the five-year LPR was trimmed by 15 bps, the most since a revamp of the rate in 2019, to 4.45%. Recently, Chinese financial authorities allowed commercial banks to reduce the lower limit of interest rates on home loans by 20 bps, based on the corresponding tenor of benchmark LPRs for buying of first homes. The loan guidance came after the central bank data showing new bank loans in China plunged to their lowest in more than four years in April. During the first quarter, banks in many cities in China have cut mortgage rates after calls from authorities to support buyer sentiment. source: People's Bank of China
Interest Rate in China averaged 4.46 percent from 2013 until 2022, reaching an all time high of 5.77 percent in April of 2014 and a record low of 3.70 percent in January of 2022. This page provides the latest reported value for - China Interest Rate - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news. China Loan Prime Rate - data, historical chart, forecasts and calendar of releases - was last updated on May of 2022.
Interest Rate in China is expected to be 3.65 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. In the long-term, the China Loan Prime Rate is projected to trend around 3.75 percent in 2023, according to our econometric models.