Benchmark Lending Rate

The benchmark lending rate (贷款基准利率) is the guidance rate for commercial bank loans that is formulated by the Chinese central bank, being the People’s Bank of China (PBOC).

Commercial banks in China are required to use PBOC’s benchmark lending rate when formulating their own deposit rates.

The benchmark lending rate serves as one of the key monetary policy tools that PBOC employs to make adjustments to the Chinese economy and financial system.

Article 22 of the “People’s Bank of China Law” (中国人民银行法) stipulates that the benchmark lending rate is one of the key tools that the central bank may employ for the implementation of monetary policy:

The People’s Bank of China may employ the following monetary policy tools for the implementation of monetary policy: (1) require that banking sector financial institutions submit banks reserves in accordance with stipulated ratios; (2) determine the benchmark rate of the central bank; (3) perform rediscounting for banking sector financial institutions that have opened accounts with the People’s Bank of China; (4) provide loans to commercial banks; (5) buy or sell sovereign bonds, other government securities and financial bonds or foreign exchange on the open market, (6) other monetary policy tools as confirmed by the State Council.

Rises in the benchmark lending rate have the effect of slowing economic growth by increasing the cost of borrowing, and reducing lending and liquidity.

Conversely, falls in the benchmark lending rate have the effect of spurring economic growth by reducing the cost of borrowing, and increasing lending and liquidity.

No. Date Short-term Medium and long-term Personal housing fund loan
Under six months Six months – one year One to three years Three to five years Over five years Under five years Over five years
1 24 October 2015 4.35 4.35 4.75 4.75 4.90 2.75 3.25
2 26 August 2015 4.60 4.60 5.00 5.00 5.15 2.75 3.25
3 28 June 2015 4.85 4.85 5.25 5.25 5.40 3.00 3.50
4 11 May 2015 5.10 5.10 5.50 5.50 5.65 3.25 3.75
5 1 March 2015 5.35 5.35 5.75 5.75 5.90 3.50 4.00
6 22 November 2014 5.60 5.60 6.00 6.00 6.15 3.75 4.25
7 6 July 2012 5.60 6.00 6.15 6.40 6.55 4.00 4.50
8 8 June 2012 5.85 6.31 6.40 6.65 6.80 4.20 4.70
9 7 July 2011 6.10 6.56 6.65 6.90 7.05 4.45 4.90
10 6 April 2011 5.85 6.31 6.40 6.65 6.80 4.20 4.70
11 9 February 2011 5.60 6.06 6.10 6.45 6.60 4.00 4.50
12 26 December 2010 5.35 5.81 5.85 6.22 6.40 3.75 4.30
13 20 October 2010 5.10 5.56 5.60 5.96 6.14 3.50 4.05
14 23 December 2008 4.86 5.31 5.40 5.76 5.94 3.33 3.87
15 27 November 2008 5.04 5.58 5.67 5.94 6.12 3.51 4.05
16 30 October 2008 6.03 6.66 6.75 7.02 7.20 4.05 4.59
17 27 October 2008 6.12 6.93 7.02 7.29 7.47 4.05 4.59
18 9 October 2008 6.12 6.93 7.02 7.29 7.47 4.32 4.86
19 16 September 2008 6.21 7.20 7.29 7.56 7.74 4.59 5.13
20 21 December 2007 6.57 7.47 7.56 7.74 7.83 4.77 5.22
21 15 September 2007 6.48 7.29 7.47 7.85 7.83 4.77 5.22
22 22 August 2007 6.21 7.02 7.20 7.38 7.56 4.59 5.04