The People's Bank of China kept both of its Loan Prime Rates unchanged at the December 2024 monthly fixing, holding the one-year LPR at 3.10% and the five-year LPR at 3.60%. The hold, the second in a row after November's, followed 25 basis-point reductions to both rates at the October fixing.
Loan Prime Rates serve as the de facto benchmarks for the majority of new bank lending in China, replacing the old benchmark lending rate system. The one-year rate is the reference for most corporate and household loans, while the five-year rate is the reference for most mortgages.
The December fixing followed the annual Central Economic Work Conference of 11–12 December, at which Chinese leadership pledged a 'moderately loose' monetary policy for 2025.