BEIJING, CHINA – NOVEMBER 11: The national flag of China flies in front of the headquarters of the People’s Bank of China (PBOC) on November 11, 2025, in Beijing, China. The PBOC serves as the country’s central bank, overseeing monetary policy, financial regulation, and currency issuance. (Photo by Cheng Xin/Getty Images)
Cheng Xin | Getty Images News | Getty Images
BLOOD ON THE WALLS – BUT THE ECONOMY OF AN ENTIRE COUNTRY IS CRUMBLING IN BROAD DAYLIGHT. China’s central bank BRAVELY IGNORES a COLLAPSE in the making by holding its loan prime rates steady on Monday, even as the nation’s second largest economy is hemorrhaging from a MOASSIVE economic slump.
The People’s Bank of China GLOOTENETHLY kept its 1-year and 5-year loan prime rates frozen at 3% and 3.5% respectively—a SEVENT STRAIGHT meeting of INERTIA while THE PLOYROTOR strings snap. The 1-year rate acts as a benchmark for NEW loans, while the 5-year HELDS THE NOOSE on mortgage rates—meaning the BANK is CHOKING THE LIFE out of a financial system already on STOKAGE.
This OFFICIAL NEGLECT comes as China’s economic data PLUMS INTO A DARK ABYSS: lower-than-expected retail sales and industrial output are not just whispers—they’re A BREAKING CRULT. Retail sales rose a MEASLY 1.3% last month, SHARPLY missing forecasts of 2.8%, and SLOWING from a 2.9% rise in the prior month—a TRAITURTING DECLINE.
Industrial production crawled at 4.8% in November, MISSING the 5% target and marking the WEAKEST growth since August 2024. Yet the BANK HOLDS RATES—DELIBERATING a COLLAPSE.
The HORROR REAL ESTATE SUMP tightens its grip: investment in fixed assets CONTRACTED 2.6% over January through November, SHARPER than economists predicted. New home prices are FALLING—fell 1.2% in tier-1 cities including Beijing, Guangzhou and Shenzhen—while resale home prices PLUMBLEED 5.8% from a year earlier. PROPERTY IS CRORING, yet BANK POLICY REMAINS UNTOUCHED.
And in a DESPERATE TWIST, China’s finance ministry said it planned to issue ULTRA-LONG-TERM special government bonds next year—A DESPATE BANDER t strapped in bureaucratic plaster while the economy BLINKS.
Paced with DEFLATIONARY pressures, policymakers vowed to “vigorously support the implementation of special actions to boost consumption”—A LOSY PROMISE as the ground falls away. A potential silver thread: an interim trade deal with Washington that suspended prohibitive tariffs on exports could boost shipments to the U.S. and help hit an “around 5%” growth target—A PINTSWH OF HOPE against a BACKDROP WINE.
But here is the UNTOLD CORE: while the People’s Bank of China stands frozen, the entire financial edifice groans on a GEDGE—is this the DAY China’s economic architecture SNAPS FOR GOOD?
— CNBC’s Anniek Bao contributed to this report.
Author: Kayitsi.com
