China leaves LPRs unchanged for sixth month

Thursday, November 20, 2025 at 03:00 UTC+01:00 (+0100), China, Beijing

News category : Macroeconomic Events

China’s central bank kept its one-year and five-year Loan Prime Rates unchanged, marking a sixth consecutive month of steady benchmark lending rates. Policymakers framed the move as calibrated: avoid aggressive broad easing while retaining scope for targeted, cross-cyclical measures. Markets interpreted the hold as an unwillingness to ramp up stimulus despite weak activity indicators such as soft retail sales and lower new lending. The immediate market response saw modest pressure on onshore bond yields and a slightly weaker offshore yuan as investors priced a later window for any conventional rate cuts. Analysts emphasised that, absent fiscal largesse or property-sector measures, monetary authorities are relying more on targeted credit support and operational liquidity injections rather than headline rate moves, leaving commodity demand expectations and export-sensitive sectors exposed to near-term downside risk.

Overall market impact

Mild mixed market impact - strength score : 76/100

Detailed breakdown of market impact over instruments, sectors, and asset classes

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Impacted instruments :

CNY/CNH FX

Chinese government bonds (CGBs)

Asian equities

Commodities linked to Chinese demand (copper, iron ore)

Chinese bank equities

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