China’s LPR Remains Unchanged in September

On September 20, under the authorization of the People’s Bank of China, the National Interbank Funding Center announced that the one-year LPR stands at 3.35% and the LPR for loans over five years at 3.85%, both unchanged from the previous period. These rates will remain effective until the next LPR update. Industry experts point out that the stability of the LPR in September is primarily due to pressure on banks’ net interest margins, along with an unchanged policy rate (7-day reverse repo rate). There is no urgent need for continuous policy rate cuts or for guiding LPR adjustments in the short term.