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China Set to Hold Lending Rates Steady as Economic Growth Rebounds
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Firstpost•19-10-2026, 14:19
China Set to Hold Lending Rates Steady as Economic Growth Rebounds
- •China is widely expected to keep its benchmark one-year and five-year loan prime rates unchanged for the 17th consecutive month in October.
- •A Reuters survey of 22 respondents unanimously predicted that the People's Bank of China will maintain the rates at 3.00 per cent and 3.50 per cent respectively.
- •Stronger-than-expected third-quarter economic growth, driven by robust exports, has reduced the immediate need for monetary easing or new stimulus measures.
- •Despite the rebound, analysts warn that heavy reliance on external demand and a prolonged downturn in the property sector continue to pose structural challenges for the recovery.
Key Questions Answered
The People's Bank of China is expected to maintain the one-year loan prime rate at 3.00 percent and the five-year loan prime rate at 3.50 percent.
A stronger-than-expected third-quarter economic growth rebound has reduced the prospects for near-term monetary easing.
China's struggling property sector continues to face challenges, with new home prices falling again in September to extend a downturn lasting more than three years.
