Loan Prime Rates on hold but cuts still on the horizon

The Loan Prime Rate (LPR), the reference point against which banks now price loans, held steady in December. The one-year LPR was unchanged at 4.15% (both the Bloomberg consensus and our forecast were 4.10%), while five-year LPR remained at 4.80%. The LPR replaced the PBOC’s traditional benchmark lending rate in August and has since declined on three occasions, by a cumulative 16 basis points. It is published monthly and set based on quotations provided by banks.

Subscriber content

Read this in full, free

Start a free trial and use one of your 10 free starter credits to unlock this piece.


Free. 10 articles. No card required.
By completing this form you are agreeing to our Terms and Conditions for the provision of a free trial of Capital Economics' services. We take your privacy seriously and will not share your details with others without your consent. By providing your details, including your email address, you are consenting to Capital Economics sending you macroeconomic commentary and analysis. You can unsubscribe at any time. See our Privacy Policy for more information.

Already a client or trialist? Log in to read this.