China’s central bank kept its loan prime rate unchanged for the eighth straight month, maintaining the one-year rate at 3.0% and the five-year rate at 3.50%. The decision comes as policymakers face persistent challenges from weak domestic demand and a prolonged property sector slump.

Despite meeting its 2025 growth target of 5%, Beijing’s economy remains under pressure. Export gains that supported activity last year are expected to weaken in 2026, while consumer spending and business investment show little sign of rebounding strongly. Officials have relied on repeated LPR cuts since 2021 to stimulate borrowing and growth.

Economists expect further monetary easing in 2026, including potential reserve requirement ratio reductions or additional rate cuts. Markets will watch upcoming data on industrial output, retail sales, and credit expansion for signs of whether current policies are gaining traction.

Analysts say more aggressive stimulus could emerge if growth momentum falters, especially in the property market where debt risks remain elevated.