China's LPR in March remains unchanged for the tenth consecutive month: the LPR for over 5 years is 3.5%, and the 1-year LPR is 3%

China's loan market quotation rate (LPR) for March was released on March 20, with both the 1-year and 5-year LPR remaining unchanged. The People's Bank of China authorized the National Interbank Funding Center to announce that the 1-year loan market quotation rate (LPR) for March is 3%, the same as the previous value of 3%. The 5-year loan market quotation rate (LPR) for February is 3.5%, unchanged from the previous value of 3.5%. The LPR has remained unchanged for ten consecutive months. The last adjustment to the LPR was in May 2025, when both the 1-year and 5-year LPR were lowered by 10 basis points. In light of last month's unchanged LPR, Dong Ximiao, chief economist at Zhongan, analyzed for the China Financial Times that the LPR's "inactivity" is mainly influenced by the unchanged pricing basis and the existing low interest rate levels. Industry insiders believe that the current comprehensive financing costs in society are operating at a low level, reflecting the effectiveness of moderately loose monetary policy. According to the latest data from the central bank, in January 2026, the weighted average interest rate for corporate loans is about 3.2%, a decrease of 2.4 percentage points from the peak during the current interest rate reduction cycle in the second half of 2018. Regarding the future market direction, Wang Qing, chief macro analyst at Dongfang Jincheng, believes that the LPR quotation has remained unchanged since June 2025, with the fundamental reason being driven by strong exports and the rapid development of new productive forces represented by high-tech manufacturing. The macro economy in 2025 has withstood external trade fluctuations and the adjustments in the domestic real estate market, successfully achieving the annual economic growth target. In January 2026, the central bank will introduce a package of structural monetary policies based on the economic and financial situation, strengthening support for key areas and weak links in the national economy, such as technological innovation and small and micro enterprises. "It is worth noting that high-frequency data shows that in the first quarter of 2026, China's exports will remain strong, and the price level is expected to continue a moderate recovery trend. These factors provide support for maintaining the current monetary policy's stability," Wang Qing analyzed. Looking ahead, the industry generally believes that we are entering a policy observation period. "The 2026 work conference of the People's Bank of China mentioned promoting the low-level operation of comprehensive financing costs in society, with the cost reduction goal focusing on maintaining a low operating state. Currently, the weighted average interest rate for general loans in China is at a historical low. Given that the financing costs for the real economy are relatively low and the bank's interest margins need to be repaired, the urgency for domestic interest rate cuts is not high. The actual operational pace may depend on the recovery of credit demand, and attention should be paid to the quality of various financial data in the first quarter," analyzed Ming Ming, chief economist at CITIC Securities