The National Banking Center in China said that the main Chinese interest rate for loans for one year, which is a standard market lending price, reached 3.1%, today, Thursday, without a change in the previous month.
He added that the main interest rate for loans for more than five years, on which many lenders depend on the mortgage rates, also remained unchanged from the previous 3.6%reading.
According to the Chinese News Agency, low rates reflect the level of financing costs for families and companies, as interest rates decrease less burdens on borrowers and stronger support for economic activity.
In 2024, the Chinese People’s Bank (Central Bank) directed the main interest rate of loans down with two discounts in each of the reserve requirements and basic interest rates to help maintain economic recovery.
According to this year’s government work report, China decided to adopt a somewhat lenient monetary policy.
The Chinese People’s Bank Governor had recently confirmed that the central bank would reduce the rates of reserve requirements and interest rates when necessary this year, in line with local and international economic and financial conditions, as well as the performance of financial markets.
