FX.co ★ China Holds LPR Rates at Record Lows for 17th Month

In October 2026, the People’s Bank of China left its key lending rates at record lows for the 17th consecutive month, even as the yuan strengthened on the back of solid economic data that broadly matched expectations. The move underscored policymakers’ caution regarding the potential fallout from the Middle East conflict, despite third-quarter GDP growth surpassing forecasts. The one-year loan prime rate (LPR)—the main benchmark for corporate and household borrowing—was held at 3.0%, while the five-year LPR, which guides mortgage lending, remained unchanged at 3.5%. At the same time, industrial production and retail sales posted their fastest growth in six months, and the unemployment rate edged lower. New yuan lending continued to rise in September but stayed below year-earlier levels, as subdued household demand and a broader slowdown in economic activity constrained credit growth. Housing prices also declined further in September; however, the pace of the downturn was the slowest in nine months, helped in part by recent government support measures.