China’s Central Bank Holds Rates Steady for Fifth Consecutive Month

The People’s Bank of China (PBoC) has kept its benchmark lending rates unchanged for the fifth straight month in October, aligning with market expectations. The 1-year Loan Prime Rate (LPR) remains at 3.00%, while the 5-year LPR — critical for housing loans — stays at 3.50%.

This decision underscores the bank’s commitment to policy stability despite signs of slowing economic growth. Weak industrial production and soft domestic demand have revealed the fragile nature of China’s recovery. Nevertheless, the PBoC has avoided aggressive rate cuts, choosing a measured and cautious approach.

Analysts suggest the move aims to maintain financial stability and limit depreciation pressure on the yuan. By holding rates steady, the bank supports the currency while keeping credit costs manageable. However, the decision could also slow credit expansion, particularly in the troubled property sector.

The PBoC’s stance signals a continued commitment to prudence, balancing growth support with financial stability in a challenging economic environment.