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>>February sees the PBOC’s loan prime rates remain unchanged, marking a deliberate hold amid global economic uncertainty.

February sees the PBOC’s loan prime rates remain unchanged, marking a deliberate hold amid global economic uncertainty.

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about 4 hours ago

Policy Decision

The PBOC kept the one‑year LPR at 3.45% and the five‑year at 4.20% in February, its seventh month of stability. Moderate 2.1% inflation and 5.8% industrial growth support the hold. Economists had predicted the pause, with 85% expecting no change.

International Comparison

Unlike the Fed and ECB, which are tweaking rates, China maintains its current level, reflecting its distinct economic structure. Asian markets moved little and the yuan stayed steady. This divergence highlights different pressures on emerging versus advanced economies.

Sectoral Impact

Stable LPRs keep mortgage costs predictable, aid real‑estate activity, and give manufacturers and SMEs reliable borrowing terms. Inflation remains within the 3% target band and the yuan shows resilience. The mix supports growth while limiting financial‑system risk.

Future Outlook

The PBOC signals a “prudent” stance with flexibility to act if inflation rises, growth slows, or global turbulence intensifies. Tools such as reserve‑requirement adjustments and open‑market operations remain available. Key watchpoints include GDP, PMI, credit growth and property data.