Economic Buzz: PBOC keeps key lending rates steady at 3.0% and 3.5% amid growth slowdown

The People?s Bank of China left its benchmark lending rates unchanged in May 2026, keeping the one-year LPR at 3.0% and the five-year LPR at 3.5% for a 12th consecutive month. The central bank adopted a cautious stance amid mounting uncertainty from the Middle East conflict, rising energy-driven inflation pressures, and slowing domestic growth. Recent data showed industrial production and retail sales losing momentum, while policymakers continued to support the economy through a moderately loose monetary policy approach.

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