China's LPR holds steady for 11th month, monetary policy has room for adjustment

In April, China's benchmark lending rate -- Loan Prime Rates (LPR) -- remained unchanged for the 11th consecutive month, with the 1-year rate at 3% and the 5-year-plus rate at 3.5%. The decision reflects a deliberate policy approach aimed at consolidating prior easing measures, maintaining bank sector resilience, and preserving room for future monetary adjustments amid a combination of stable domestic economic growth and external pressures.

The sustained stability of the LPR is mainly driven by steady policy rates, ongoing pressure on banks' net interest margins (NIMs), the resilience of domestic economic recovery, and the moderating effects of external inflation and global monetary conditions. Due to no change in the pricing basis and a lack of