FX.co ★ China Holds 5-Year Loan Prime Rate at 3.50% in February, Signaling Policy Steadiness

China kept its 5-year Loan Prime Rate (LPR) unchanged at 3.50% in February 2026, maintaining the same level recorded in January 2026. The decision, reflected in data updated on 24 February 2026, indicates no shift in the benchmark rate used as a key reference for long-term corporate and mortgage lending.

The unchanged 5-year LPR suggests a continuation of the existing monetary stance, with policymakers opting not to further ease long-term borrowing costs at this time. Market participants often watch the 5-year LPR closely for clues on the direction of housing and investment-related credit conditions, as it directly affects the pricing of many long-term loans in China.

By holding the rate steady for a second consecutive month, authorities appear to be balancing support for economic activity with concerns over financial stability and longer-term credit risks, while providing a consistent cost of funding for businesses and households going into the later part of the first quarter of 2026.