The People’s Bank of China (PBOC) kept key lending rates at record lows for a fourth straight month in September, in line with market expectations. The move followed its decision last week to leave the seven-day reverse repo rate unchanged. The one-year Loan Prime Rate (LPR)—the benchmark for most corporate and household borrowing—remained at 3.0%, while the five-year LPR, which anchors mortgage rates, stayed at 3.5%. Both were last lowered by 10 basis points in May. The decision came amid signs of easing Sino-US trade tensions, but against a backdrop of weakening domestic momentum and fresh US policy easing. Industrial output in August expanded at its weakest pace since August 2024, while retail sales growth hit a nine-month low. Although new yuan loans rebounded after July’s surprise contraction, credit expansion fell short of expectations.