The People's Bank of China (PBC) has chosen to keep the interest rates of its one- and five-year credit facilities unchanged, which serve as a reference for consumer loans and mortgages, respectively, and whose last downward adjustment occurred in May 2025.
With this decision, the Chinese monetary authority has now gone seventeen months without changes, maintaining the one-year loan rate at 3%, while the interest applied to five-year loans remains at 3.50%.
The one-year rate affects most new loans and existing ones, while the five-year reference rate is used for mortgage financing.
The last reduction of the preferential rates was recorded in May 2025, when the People's Bank of China cut the rate applied to one-year loans by 10 basis points, which went from 3.10% to 3%, while the rate for five-year loans stood at the current 3.50%, instead of 3.60%.
The monetary policy strategy of the PBC is aimed at sustaining stable economic growth and a gradual recovery of prices, with the goal of ensuring a favorable financial and monetary environment for high-quality development and for the stability in the functioning of financial markets.