China held borrowing rates steady in December 2025, citing stable growth and fiscal stimulus, with possible easing expected in 2026.

China kept its benchmark lending rates unchanged in December 2025 for the seventh consecutive month, with the one-year LPR at 3.0% and the five-year rate at 3.5%, matching market expectations. The People's Bank of China cited stable growth, low bank margins, and ongoing fiscal stimulus as reasons for delaying further rate cuts, despite a recent economic slowdown. Policymakers signaled potential monetary easing in 2026, including possible rate cuts and reserve requirement reductions, to support growth and inflation. The economy remains on track to meet Beijing’s 5% annual growth target.