China's central bank holds rates steady for eleventh consecutive month as economic resilience and rising inflation reduce urgency for stimulus. The People's Bank of China maintained its one-year loan prime rate at 3.0% and five-year rate at 3.5% in April, signaling confidence in domestic growth momentum. First quarter GDP accelerated to 5%, exceeding expectations, while factory-gate prices climbed 0.5% year-over-year for the first time in over three years, indicating inflation pressures are building. However, escalating Middle East tensions and surging global oil prices have prompted policymakers to adopt a cautious wait-and-see approach rather than pursue aggressive rate cuts. Economists now expect interest rate reductions to be delayed as the PBOC prioritizes currency stability and assesses external geopolitical risks to the growth outlook.
