China leaves key lending rates on hold
By Abigail Townsend
Date: Monday 20 Apr 2026
LONDON (ShareCast) - (Sharecast News) - China's central bank left two key interest rates on hold on Monday, in line with expectations, amid a backdrop of solid economic growth.
The People's Bank of China opted to leave the one-year loan prime rate (LPR) at 3% and the five-year LPR at 3.5%. The PBOC has now left the cost of borrowing unchanged for 11 consecutive months.
The latest decision comes amid a backdrop of heightened geopolitical turmoil but also solid economic growth in China. Data released last week by the National Bureau of Statistics showed GDP rose 5% year-on-year in the three months to March end, up from February's 4.5% growth and ahead of consensus. Both retail sales and house prices remained under pressure, but industrial production surprised on the upside.
This was despite the impact of war in the Middle East, which has sent global energy prices soaring and reignited inflation fears. Oil supplies have also come under pressure with the vital Strait of Hormuz effectively closed, while many of the region's refineries have either been damaged or temporarily shuttered.
Asian countries have been hit particularly hard by the Iran conflict.
Societe Generale said: "Despite the strong first-quarter GDP, policymakers are likely to refrain from further easing at the late April Politburo meeting, even amid the Middle East conflict. Under a contained conflict scenario lasting only a few months, we do not expect additional fiscal stimulus this year and see scope for just one PBOC rate cut toward the year-end."
Beijing recently reduced its annual growth target to between 4.5% and 5%, from its long-standing goal of 5%.
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