China's LPR Remains Unchanged for 14th Consecutive Month

China's Loan Prime Rate (LPR) has remained unchanged for the 14th consecutive month.

According to a report by The Paper, the National Interbank Funding Center, authorized by the People's Bank of China (PBOC), announced on July 20, 2026, that the one-year LPR stands at 3.00% and the over-five-year LPR at 3.50%, both unchanged from the previous month. These rates will remain effective until the next LPR announcement.

The seven-day reverse repo rate, a key policy interest rate, has remained unchanged for 14 consecutive months since its last cut in May 2025. As a result, the pricing basis for the LPR has not changed this month.

The last adjustment to the LPR occurred in May 2025, when both the one-year and over-five-year LPRs were lowered by 10 basis points.

Yan Xiandong, spokesperson for the PBOC and Director of the Survey and Statistics Department, stated at a State Council Information Office press conference on July 15 that new loan rates in 2026 have continued to decline.

First, corporate loan rates have decreased. The weighted average interest rate for new corporate loans in June was approximately 3%, down about 0.2 percentage points year-on-year. The interest rate for new inclusive micro and small enterprise loans was 3.57%, down 0.16 percentage points from the same period last year.

Second, household loan rates have remained stable at a low level. New personal housing loan rates have stayed at a relatively low level, driving down the interest rates on existing mortgages. The new personal housing loan rate in June was around 3.1%, roughly unchanged from the same period last year. By the end of June, the interest rate on existing personal housing loans had declined by 0.13 percentage points year-on-year.

The LPR is quoted by quoting banks based on the open market operation rate (the seven-day reverse repo rate) plus a premium, and is calculated by the National Interbank Funding Center to serve as a reference for bank lending rates. Currently, the LPR includes two tenors: one-year and over-five-year.