U.S. Prosecutors Investigate Fed Chair Jerome Powell Over Headquarters Renovation 
Indonesian Stocks Plunge as MSCI Downgrade Risk Sparks Investor Exodus 
ECB’s Cipollone Backs Digital Euro as Europe Pushes for Payment System Independence 
MAS Holds Monetary Policy Steady as Strong Growth Raises Inflation Risks 
Gold and Silver Prices Plunge as Trump Taps Kevin Warsh for Fed Chair 
China Holds Loan Prime Rates Steady in January as Market Expectations Align 
Wall Street Slides as Warsh Fed Nomination, Hot Inflation, and Precious Metals Rout Shake Markets 
Dollar Struggles as Policy Uncertainty Weighs on Markets Despite Official Support 
Gold Prices Pull Back After Record Highs as January Rally Remains Strong 
Fed Confirms Rate Meeting Schedule Despite Severe Winter Storm in Washington D.C. 
U.S. Urges Japan on Monetary Policy as Yen Volatility Raises Market Concerns 
South Korea Exports Surge in January on AI Chip Demand, Marking Fastest Growth in 4.5 Years 
Philippine Economy Slows in Late 2025, Raising Expectations of Further Rate Cuts 
Thailand Economy Faces Competitiveness Challenges as Strong Baht and U.S. Tariffs Pressure Exports 
Trump to Announce New Federal Reserve Chair Pick as Powell Replacement Looms 
U.S. and El Salvador Sign Landmark Critical Minerals Agreement to Boost Investment and Trade 
The People’s Bank of China (PBOC) kept its benchmark loan prime rates unchanged on Friday, aligning with market expectations. The one-year LPR stayed at 3.00%, while the five-year LPR, a key reference for mortgage rates, remained at 3.50%. Both rates are at record lows, reflecting China’s long-standing monetary easing efforts aimed at curbing deflation and boosting domestic demand.
The decision follows a recent easing in U.S.-China trade tensions, reducing the urgency for further monetary stimulus. In May, the PBOC had trimmed both LPRs to support the economy amid weak demand and deflationary pressure. However, the subsequent agreement between China and the U.S. to scale back tariffs signaled less immediate risk to economic stability, offering policymakers room to pause.
The LPR, determined by 18 designated commercial banks, serves as China’s benchmark lending rate. A lower LPR injects liquidity into the financial system and encourages borrowing. Despite steady exports since the May tariff agreement, other sectors of the Chinese economy have shown mixed performance.
Persistent disinflation remains a key concern, potentially prompting future rate cuts if economic indicators weaken further. For now, however, the PBOC is expected to monitor developments in trade talks and domestic data before making additional policy moves.
By holding rates steady, the central bank signals cautious optimism as trade tensions ease and external risks stabilize. Still, any sustained slowdown in inflation or domestic growth could reopen the door for further monetary easing.
This decision highlights China’s careful balancing act—supporting growth while preserving financial stability in a shifting global economic landscape. As the trade outlook improves, attention will remain on inflation trends and consumer activity to guide future monetary policy.
