Overview
- China kept the one-year LPR at 3.00% and the five-year at 3.50% for January, matching all forecasts and extending a steady streak to eight months.
- Last week the PBOC reduced several sector-specific policy rates and indicated room to lower banks’ reserve requirement ratios and broader rates this year.
- Analysts see potential for broader monetary easing in the first half, with some traders suggesting February bears watching, though timing remains uncertain.
- The one-year LPR guides pricing for most new and outstanding loans, while the five-year rate is a key reference for mortgages set monthly from bank submissions.
- Official data show 2025 growth reached 5.0% on the back of strong exports as domestic demand lagged, with new home prices falling again in December.