5-year prime interest rate was also maintained at 3.5%; indexes are the lowest in Chinese history
The –which works as the Chinese Central Bank– announced this Monday (April 20, 2026) the maintenance of the LPR (Taxa Basic Interest Rate for Loans) at 3%. It is the 11th consecutive month that the index remains unchanged at its lowest historical level.
A LPR for due dates 5 years or more was also kept in 3,5 %. These LPRs are valid until the next announcement from the Chinese central bank, which takes place monthly, every 20th.
LPRs are set based on rate proposals submitted by 20 commercial banks to the People’s Bank of China. The 1-year LPR is the benchmark for companies and households, while the 5-year LPR is the benchmark for the real estate sector.
The last time China did so was in May last year, when the tariff war with the United States began. Now, another crisis is surrounding the Chinese economy – the war in Iran and instability in the Middle East –, but the government has decided to maintain an even more conservative stance.
The good result of the Chinese GDP (Gross Domestic Product) in the 1st quarter contributed to maintaining the rate. The country’s economy grew 5%, returning to a level above 4.9% after 2 quarters. The result in the first 3 months of the year was at the top of the country’s economic expansion expectations for 2026. In February, the Chinese government set this year’s growth target at between 4.5% and 5%.
