Beijing leaves key interest rates on hold
By Abigail Townsend
Date: Monday 22 Sep 2025
(Sharecast News) - The People's Bank of China left its benchmark lending rates unchanged on Monday, as widely expected.
The central bank kept the one-year loan prime rate at 3.0% and the five-year rate at 3.5%.
The one-year rate affects new and outstanding loans, while the five-year rate is more closely associated with mortgages.
The PBoC has now left rates on hold for four consecutive months, having last trimmed rates by 10 basis points in May.
Beijing is continuing to adopt a cautious approach to monetary easing, amid sluggish domestic growth and the ongoing trade war with the US.
Last Thursday the PBoC kept its main policy rate, the seven-day reverse repo rate, on hold, also in line with expectations.
Chinese equities have been enjoying a rally this year. However, the country's economic data remains subdued, including slowing growth in both retail sales and industrial output.
Beijing is targeting GDP growth of around 5% this year.
Complex trade talks, meanwhile, continue between Beijing and Washington. Earlier this year, the two economies agreed a ceasefire in their escalating trade war, which had seen it impose ever-higher reciprocal tariffs on each other.
The current pause is due to expire in November
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