China's Central Bank Announces February Interest Rate Decision: LPR Rates Held Steady

Interest Rates Maintain Current Levels China's 1-year and 5-year loan prime rates (LPR), which serve as the country's benchmark interest rates, were left unchanged in the February assessment.
According to the statement made by the National Interbank Funding Center, the 1-year loan prime rate remains at 3 percent, while the 5-year loan prime rate continues at 3.5 percent.
LPR Mechanism and Economic Impact The LPR, determined based on the profit margin notifications added by 18 banks to the People's Bank of China's (PBoC) borrowing rate, has been used as the country's primary benchmark interest rate since 2019.
Among these rates, the 1-year loan prime rate is taken as the basis for corporate loans, while the 5-year rate is considered the main reference point for mortgages.
Last Adjustment and Current Status The last adjustment to the loan prime rates was made in May 2025.
At that time, following a 10-basis point reduction, the 1-year loan prime rate was revised from 3.1 percent to 3 percent, and the 5-year loan prime rate was revised from 3.6 percent to 3.5 percent.