China's one-year loan prime rate (LPR) remained steady at 3.1 percent this Wednesday, maintaining its position for the month. Similarly, the over-five-year LPR, a key determinant for mortgage rates, stayed at 3.6 percent, as reported by the National Interbank Funding Center.
Bruce Pang, chief economist at JLL Greater China, shared with CGTN that there is no immediate need to adjust the LPR this month. This decision aligns with China's ongoing evaluation of the effects of its targeted policy measures aimed at economic stabilization.
Since late September, China has rolled out a series of incremental policies designed to stabilize the economy. These measures include monetary easing, fiscal incentives, and initiatives to support the property market.
Although the unchanged LPR indicates a cautious stance in the near term, Pang suggested that potential adjustments could be on the horizon in the longer term. He noted that another policy rate cut before the end of the year appears unlikely, but interest rate cuts might be possible in 2025. This outlook is contingent on China’s 2025 economic and social development goals, current price levels, and the progress of the property market's recovery.
Reference(s):
cgtn.com
