The People's Bank of China kept its key lending rates at record lows for the 17th straight month in October 2026, even as the yuan continued to strengthen amid strong economic data that met expectations. The decision reflected caution about the impact of the Middle East conflict, despite Q3 GDP growth exceeding expectations. The one-year loan prime rate (LPR), the benchmark for most corporate and household borrowing, was left at 3.0%, while the five-year LPR, a reference rate for mortgages, remained at 3.5%. Meanwhile, industrial production and retail sales grew at their fastest pace in six months, while the unemployment rate eased. New yuan loans continued to rise in September, though they remained below the level recorded a year earlier, as weak household demand weighed on lending amid slowing economic activity. Housing prices continued to decline in September, though the pace of contraction was the slowest in nine months, supported by government measures.