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China seen holding loan rates steady in August despite economic weakness
All 25 Reuters survey respondents expect the one-year rate to stay at 3.00% and the five-year rate at 3.50%, despite weak July data.
- On Thursday, August 20, 2026, the People's Bank of China kept benchmark lending rates unchanged for the 15th consecutive month, with the one-year LPR at 3.00% and the five-year LPR at 3.50%.
- China's leaders pledged at July's Politburo meeting to support the slowing economy by accelerating fiscal spending on infrastructure projects rather than planning major new stimulus measures.
- All 25 participants in a Reuters survey predicted the steady rates, as commercial banks' net interest margins remain near record lows of 1.41%, limiting the PBOC's room for further interest rate cuts.
- Following the decision, Chinese equity markets sold off sharply, with the Shanghai Composite dropping more than 2% as investors noted the PBOC's preference for incremental steps over dramatic interventions.
- Broad rate cuts appear off the table for the rest of 2026, as Citi analysts said "focus should remain on fiscal policies with little sign for an outright LPR cut from the PBOC this month.
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China's central bank holds benchmark lending rates steady for 15th mon
The People's Bank of China (PBOC) maintained its benchmark lending rates at record lows for the 15th consecutive month in August 2026, matching market expectations. The central bank exercised caution amid Middle East geopolitical tensions and easing Q2
·Ra'anana, Israel
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China leaves loan rates steady for 15th consecutive month in August
·London, United Kingdom
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primary loan rate of one year was maintained at 3.00%, while the five-year LPR remained at 3.50%
·São Paulo, Brazil
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China kept its loan reference rates unchanged this Thursday for the fifteenth consecutive month in August, in line with market expectations.
·Mexico City, Mexico
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Coverage Details
Total News Sources10
Leaning Left0Leaning Right1Center4Last UpdatedBias Distribution80% Center
Bias Distribution
- 80% of the sources are Center
80% Center
C 80%
R 20%
Factuality
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