BEIJING, Aug. 20 (Xinhua) -- China's one-year loan prime rate (LPR), a market-based benchmark lending rate, came in at 3 percent Thursday, unchanged from the previous month.
The over-five-year LPR, on which many lenders base their mortgage rates, also remained unchanged from the previous reading of 3.5 percent, according to the National Interbank Funding Center.
The unchanged LPR this month is in line with market expectations, according to Wang Qing, chief macro analyst at Golden Credit Rating.
The economist noted the steady LPR rates came after China's gross domestic product grew 4.7 percent year on year in the first half of 2026, within the annual growth target of 4.5 to 5 percent, while new quality productive forces, represented by high-tech manufacturing, are developing at an accelerated pace.
"This means that, although investment and consumption momentum has weakened since the second quarter and economic growth momentum has moderated, macro policies have maintained strong policy patience, and monetary policy remains in an observation period," said Wang.
Wen Bin, chief economist at China Minsheng Bank, also highlighted supporting factors of economic fundamentals, citing robust export growth and fast-growing value-added industrial output driven by high-tech and equipment manufacturing.
The policy outlook points to continued support. A meeting held by the Political Bureau of the Communist Party of China Central Committee on July 30 stressed that pragmatic and effective incremental policies will be timely introduced, urging intensified efforts to step up counter-cyclical adjustments.
It also said monetary policy tools should be used comprehensively and adjusted in a timely manner.
The current overall social financing costs also remain at a relatively low level, reported China Securities Journal, Xinhua's financial newspaper, citing official data.
The central bank will guide and regulate interest rate levels in light of macroeconomic conditions, price trends and the needs of macro regulation, to keep the overall social financing costs at a low level, Zou Lan, deputy governor of the People's Bank of China, was quoted by the paper as saying. ■
