Trump Questions Housing Bill as He Prioritizes SAVE America Act 
RBA Expected to Hold Interest Rates at 4.35% as Markets Watch AUD/USD and ASX 200 
BoE Policymaker Alan Taylor Signals No Need for Interest Rate Hike Amid Iran War Inflation Risks 
Oil Prices Slip as U.S.-Iran Peace Talks and Strait of Hormuz Risks Keep Markets on Edge 
Taiwan Central Bank Likely to Keep Interest Rates Unchanged Through 2027 
Asian Stocks Mixed as South Korea Slides on Profit-Taking, Japan and China Gain on Strong Factory Data 
Japan Signals Preference for Low Interest Rates as BOJ Policy Debate Intensifies 
US Stock Futures Steady as Investors Await Payrolls Data and Monitor Iran Tensions 
South Korea Signals Possible Interest Rate Hike as Inflation Remains Elevated 
Economic pessimism has set in – but there are reasons for Australians to be hopeful 
Goldman Sachs Sees Fed Holding Interest Rates Steady Until 2027 
BOJ Hawk Signals Faster Interest Rate Hikes Amid Inflation Risks 
Gold Price Drops to Eight-Month Low as Fed Rate Hike Bets Weigh on Bullion. Source: Photo by Michael Steinberg via Pexels 
Malaysia Central Bank Moves to Support Ringgit Amid Foreign Fund Outflows 
Trump Urges Gasoline Retailers to Cut Prices to $2.50 Per Gallon, Warns of Legal Action 
Global Financial Firms Shift Asia Expansion Focus to South Korea as China, India Face Caution 
China kept its benchmark lending rates unchanged for the eighth consecutive month in January, signaling a continued cautious approach to monetary policy amid a fragile economic recovery. The decision, announced on Tuesday, was widely anticipated by financial markets and analysts, reinforcing expectations that policymakers are prioritizing stability over aggressive stimulus at this stage.
The People’s Bank of China left the one-year loan prime rate (LPR) at 3.0% and maintained the five-year LPR at 3.5%. These rates serve as key reference points for lending across the world’s second-largest economy. The one-year LPR is the benchmark for most new and outstanding corporate and household loans, while the five-year LPR plays a critical role in determining mortgage rates and long-term borrowing costs in China’s property sector.
Market consensus ahead of the announcement pointed clearly toward no change. In a Reuters survey of 22 market participants conducted last week, all respondents correctly predicted that both the one-year and five-year LPRs would remain unchanged. This unanimous outlook reflected growing confidence that Chinese policymakers are comfortable with the current policy stance, even as economic headwinds persist.
China’s central bank has been balancing the need to support economic growth with concerns over financial risks, currency stability, and capital outflows. While recent data has shown modest improvements in consumption and industrial activity, challenges such as weak property demand, local government debt pressures, and subdued private investment continue to weigh on the outlook. As a result, authorities appear reluctant to deploy broad-based rate cuts, instead favoring targeted measures and liquidity support where needed.
By keeping lending rates steady, China aims to provide policy continuity and predictability for businesses and households. The unchanged LPRs also suggest that further easing, if any, may depend on clearer signs of economic deterioration or deflationary pressure in the months ahead. For now, the rate decision underscores Beijing’s commitment to a measured and data-driven monetary policy approach.
