China Keeps LPR Rates at Record Lows for 16th Month

2026-09-20 22:09 By Chusnul Chotimah 1 min. read

The People's Bank of China left its key lending rates at record lows for a 16th straight month in September 2026, even as the yuan continued to strengthen and some central banks raised interest rates, in line with expectations.

The decision reflected caution over the impact of the conflict in the Middle East, although exports remained strongly supported by AI-related demand.

The one-year loan prime rate (LPR), the benchmark for most corporate and household borrowing, was kept at 3.0%, while the five-year LPR, a reference rate for mortgages, remained at 3.5%.

Meanwhile, industrial production growth accelerated, while retail sales growth eased and fell short of expectations.

New yuan loans extended returned to growth in August, though below forecasts, as weak demand from the household and corporate sectors continued to weigh on credit growth.

Housing prices continued to decline in August, though the pace of contraction was the softest in eight months, supported by government measures.



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China Keeps LPR Rates at Record Lows for 16th Month
The People's Bank of China left its key lending rates at record lows for a 16th straight month in September 2026, even as the yuan continued to strengthen and some central banks raised interest rates, in line with expectations. The decision reflected caution over the impact of the conflict in the Middle East, although exports remained strongly supported by AI-related demand. The one-year loan prime rate (LPR), the benchmark for most corporate and household borrowing, was kept at 3.0%, while the five-year LPR, a reference rate for mortgages, remained at 3.5%. Meanwhile, industrial production growth accelerated, while retail sales growth eased and fell short of expectations. New yuan loans extended returned to growth in August, though below forecasts, as weak demand from the household and corporate sectors continued to weigh on credit growth. Housing prices continued to decline in August, though the pace of contraction was the softest in eight months, supported by government measures.
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