China kept key lending rates unchanged in January 2026, maintaining a cautious stance amid weak demand and economic challenges.

China kept its benchmark lending rates unchanged in January 2026 for the eighth consecutive month, with the one-year Loan Prime Rate (LPR) at 3.0% and the five-year LPR at 3.5%, matching market expectations. The People’s Bank of China maintained stability despite recent targeted rate cuts to structural tools, signaling a cautious approach amid weak domestic demand, a struggling property market, and slowing consumption. While no broad rate reductions are expected soon, officials have signaled room for further easing, including potential reserve requirement cuts and mortgage support, with some analysts forecasting policy moves in the first or second quarter depending on economic data.