China's loan prime rates remain unchanged

China's one-year loan prime rate (LPR), a pivotal benchmark for market-based lending, was held steady at 3.1 percent on Wednesday, unchanged for the month. Similarly, the over-five-year LPR, often used to determine mortgage rates, remained at 3.6 percent, according to National Interbank Funding Center.

Bruce Pang, chief economist at JLL Greater China told CGTN that there is no urgent requirement to modify the LPR this month, as China continues to evaluate the impact of its targeted policy measures.

Since late September, China has introduced a series of incremental policies designed to stabilize the economy, including monetary easing, fiscal incentives, and property market support initiatives.

While the unchanged LPR suggests a cautious approach in the near term, Pang hinted at potential adjustments in the longer term.

Another policy rate cut before the end of the year seems unlikely, but there remains potential for interest rate cuts in 2025, Pang said, adding that the outlook is influenced by the country's 2025 economic and social development goals, current price levels, and the recovery progress of the property market.

(Cover via CFP)