China Cuts Key Rates to Record Lows Amid Slowdown

China's central bank has reduced its benchmark one-year loan prime rate (LPR) to 3.0% and the five-year LPR to 3.5%, both at record lows, to stimulate the economy amid weak consumer demand, a property crisis, and ongoing trade tensions with the United States. This is the first LPR cut since October and follows earlier monetary easing measures, including liquidity injections and reverse repo rate cuts. Major state-owned banks, including ICBC, Bank of China, and China Construction Bank, have simultaneously lowered deposit rates by up to 25 basis points across various terms to reduce funding costs and protect profitability. The measures aim to lower lending and mortgage costs, strengthen market confidence, and potentially boost housing consumption, though analysts warn that modest rate reductions may not significantly revive loan demand. Authorities are also seeking to guide smaller banks to follow suit as part of coordinated stimulus policies. These actions are part of Beijing's broader push to address economic challenges and achieve its ambitious 5% GDP growth target for 2025.