China's central bank held benchmark lending rates unchanged for a 15th straight month even as new bank loans unexpectedly contracted by 340bn yuan in July, only the third negative print this century, with household and corporate borrowing shrinking despite multi-decade-low rates.
China's 1-year and 5-year loan prime rates have now been frozen since May 2025, leaving Beijing reliant on fiscal and targeted tools as July activity cooled. Source
