FX.co ★ China Holds LPR Rates Steady for 5th Straight Month

In October, the People’s Bank of China (PBoC) maintained its key lending rates at historic lows for the fifth month in a row, aligning with market expectations. This decision came after the bank kept the seven-day reverse repo rate unchanged the week prior. This rate now acts as the main policy rate, following the U.S. Federal Reserve's shift back to monetary easing in September amidst ongoing trade tensions between China and the United States. The one-year Loan Prime Rate (LPR), which serves as a benchmark for most corporate and household loans, held steady at 3.0%. Additionally, the five-year LPR, which influences mortgage rates, remained at 3.5%. Both rates had been reduced by 10 basis points in May. This rate decision was announced just before the release of important economic data, including third-quarter GDP, industrial output, and retail sales figures. Furthermore, new yuan loans experienced a significant surge in September 2025, more than doubling the numbers from August, driven by seasonal trends that typically increase lending during that month.