Overview
- The People’s Bank of China left the one-year LPR at 3.0% and the five-year at 3.5% in October, in line with forecasts.
- This marks a fifth consecutive monthly hold, after both benchmarks were trimmed by 10 basis points in May 2025.
- The one-year LPR underpins most new and outstanding loans, while the five-year rate guides mortgage pricing.
- A Reuters survey of 27 market participants had unanimously predicted no change to the two rates.
- Officials emphasize the seven-day reverse repo at about 1.4% as the primary operational rate, with Q3 GDP and activity data due at 0200 GMT.