China keeps benchmark lending rates steady for a seventh straight month despite weak economic data

Tuesday, December 23, 2025 -China’s central bank has kept its benchmark lending rates unchanged for the seventh consecutive month, signaling a cautious approach amid ongoing economic uncertainty. Analysts had speculated that a rate cut might be used to stimulate growth, but the People’s Bank of China appears focused on maintaining stability rather than aggressive intervention. 

Recent data shows weaker-than-expected consumer spending and slowing factory output, yet officials seem confident that steady policy can support gradual recovery.

The decision comes at a critical time as global markets watch China’s economic trajectory closely. Businesses and investors are increasingly concerned about the impact of sluggish domestic demand, with exports also showing signs of strain. 

By holding rates steady, the central bank aims to avoid triggering inflationary pressures while giving markets time to adjust. The move underscores Beijing’s reliance on targeted measures rather than broad rate cuts to manage economic momentum.

Experts say this approach could shape investment strategies in the coming months. With borrowing costs stable, companies may still face challenges in boosting expansion, but predictable rates can offer some certainty in planning. 

For international investors, China’s rate stance signals cautious optimism: policymakers are watching data closely but are unwilling to compromise long-term stability for short-term growth. As the economy navigates these pressures, attention will remain on whether other fiscal or monetary tools are deployed to stimulate activity.