Reference lending rates maintained
China left its one-year loan prime rate at 3% on October 20. The five-year-and-longer LPR, commonly used by commercial banks as a mortgage reference, remained at 3.5%. The report says both benchmarks have been unchanged since June 2025, in line with an earlier Reuters survey of analysts.
LPR figures are reference lending rates published monthly. They do not establish an identical price for every actual business loan or mortgage, whose terms can vary. The announcement therefore concerns the benchmarks rather than a claim that all borrowers face the same interest rate.
Economic context and expectations
The decision followed reported year-on-year GDP growth of 4.5% in the third quarter. Manufacturing and exports continued to support activity, while domestic consumers remained cautious with spending.
Golden Credit Rating, quoted by China Daily, assessed monetary policy as maintaining its existing direction while authorities observe the effects of measures supporting growth and housing. Its view that reference rates may remain stable is an assessment, not a confirmed future policy decision.
Other analysts expected China to meet a 4.5-5% annual growth objective without additional stimulus. That too is a forecast, rather than a completed full-year result.
Investors were looking ahead to a financial forum and remarks by central bank governor Pan Gongsheng for further policy signals. The report also noted low long-term government bond yields. These provide the setting for the October rate announcement without determining the content or timing of later stimulus measures.