Just now, LPR has been announced!

MaticHoleFiller · 2026-03-23T07:09:54+00:00

On March 20, the People's Bank of China announced that the Loan Prime Rate (LPR) remained unchanged, with the 1-year rate at 3.0% and the 5-year-plus rate at 3.5%, marking 10 consecutive months of no changes. The central bank emphasized the implementation of a moderately loose monetary policy to promote economic growth. It is expected that rate cuts may be adopted in the future to lower loan interest rates.

MaticHoleFiller

2026-03-23 07:09:54

Abstract generation in progress

【Introduction】March LPR quotes announced, unchanged for 10 consecutive months

China Fund Reporter Chenxi

On March 20, the People’s Bank of China authorized the National Interbank Funding Center to announce that the Loan Prime Rate (LPR) as of March 20, 2026, is: 1-year LPR at 3.0%, over 5 years LPR at 3.5%. These LPRs are valid until the next release.

This marks the 10th month in a row that the LPR has remained unchanged since June 2025.

The Loan Prime Rate (LPR) is quoted by banks based on the open market operation rate plus a spread, calculated by the National Interbank Funding Center, providing a reference for bank loan pricing. Currently, the LPR includes two categories: 1-year and over 5 years. The LPR quoting banks currently include 20 banks.

On March 18, the People’s Bank of China held an expanded meeting. The meeting emphasized continuing to implement a moderately relaxed monetary policy. It highlighted promoting stable economic growth and reasonable price increases as key considerations, leveraging both incremental and stock policies, as well as the integration of monetary and fiscal policies.

By comprehensively using tools such as reserve requirement ratio adjustments, government bond purchases, Medium-term Lending Facility (MLF), and reverse repos, the goal is to maintain ample liquidity, aligning social financing scale and money supply growth with economic growth and inflation expectations. Based on changes in economic and financial conditions and macroeconomic operations, the PBOC aims to guide and regulate interest rates, strengthen the implementation and supervision of interest rate policies, standardize financing intermediary costs, and promote low overall social financing costs.

In January this year, the central bank announced a 0.25 percentage point reduction in various structural monetary policy tool rates, with the one-year re-lending rate lowered to 1.25%, and other term rates adjusted accordingly.

Orient Securities believes that after the initial reduction of structural monetary policy tools at the beginning of the year, a comprehensive policy rate cut may be implemented in the second quarter, leading to a follow-up decrease in the LPR, thereby guiding lower loan rates for enterprises and residents.

CITIC Securities’ chief economist Mingming recently stated that there is room for flexible and efficient use of RRR cuts and interest rate reductions in 2026. It is expected that there will be 1-2 rate cuts and 1 RRR cut throughout the year, with structural tools playing a greater role.

Editor: Zhao Xinliang

Proofreader: Qiao Yi

Producer: Xiao Mo

Reviewer: Chen Mo

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