Story perspectives

China Keeps Loan Prime Rates Unchanged for 16th Month

By Drooid · Sep 20, 2026, 2:40 PM UTC · How we work

Summary

Story summary

China’s central bank kept benchmark loan prime rates unchanged for the 16th month on September 20.
The one-year LPR stayed at 3.00% and the five-year LPR at 3.50%.
U.S. Federal Reserve raised its target range to 3.75%–4.00% with a 25-basis-point hike.
Commercial banks’ net interest margins fell to 1.41%, limiting willingness to cut spreads.
People’s Bank of China governor Pan Gongsheng said slower loan growth is becoming the new normal.

History

Historical Context

In the 2008 crisis the Federal Reserve, led by Ben Bernanke, cut the federal-funds rate by 75 basis points in October, pushing the target to 0-0.25 % as the TED spread peaked at 4.65 % on 10 Oct 2008 and unemployment hit 10 % in Oct 2009. On 20 Sept 2023 the People’s Bank of China left LPRs at 3.00 % and 3.50 % while banks’ net-interest margins slipped to 1.41 %.

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Story summary

China’s central bank kept benchmark loan prime rates unchanged for the 16th month on September 20.
The one-year LPR stayed at 3.00% and the five-year LPR at 3.50%.
U.S. Federal Reserve raised its target range to 3.75%–4.00% with a 25-basis-point hike.
Commercial banks’ net interest margins fell to 1.41%, limiting willingness to cut spreads.
People’s Bank of China governor Pan Gongsheng said slower loan growth is becoming the new normal.

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