The People’s Bank of China held its two benchmark lending rates steady on September 20, marking the 16th consecutive month of monetary policy inaction. The one-year Loan Prime Rate remains at 3.00% and the five-year LPR at 3.50%. This decision comes against a backdrop of widening divergence with the US Federal Reserve, which raised its policy rate by 25 basis points just days earlier. PBOC Governor Pan Gongsheng described slower loan growth as the « new normal » for the Chinese economy. Economists expect rates to remain unchanged through the end of 2026, with any rate cut requiring a meaningful deterioration in economic growth.
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