PBOC Keeps Benchmark Lending Rates Unchanged on 20 October 2025, Balancing Growth Support and Risk Control

On 20 October 2025 the People’s Bank of China (PBOC) left both the one-year and five-year loan prime rates (LPR) unchanged for the fifth consecutive month, at 3.35% and 3.85% respectively. The central bank stated that monetary policy would remain “prudent and neutral,” aiming to support recovery and structural adjustment while preventing financial imbalances such as property-market bubbles and excessive local-government debt. The decision aligns with Beijing’s recent emphasis on policy stability amid a slowing global economy and persistent deflationary pressures at home.

Economists noted that while the PBOC has kept liquidity conditions ample through open-market operations and targeted lending facilities, it has avoided broad interest-rate cuts to preserve exchange-rate stability and manage capital outflows. Market observers interpret the move as a signal that authorities prefer incremental, data-driven easing rather than aggressive stimulus. For global investors, the stance reinforces expectations that China will prioritize financial discipline and risk containment even as growth remains moderate, with potential implications for commodity demand, Asian bond markets, and cross-border capital flows.