China left its benchmark lending rates unchanged for a 16th consecutive month in September 2026, keeping the one-year loan prime rate at 3.00% and the five-year rate at 3.50%, both record lows. The decision came as the offshore yuan held around 6.69 per dollar, its strongest level since July 2022, limiting room for additional monetary easing as other central banks moved toward rate hikes. Slowing growth, subdued inflation and weak credit demand nevertheless preserve the possibility of a rate cut before year-end. Recent data showed stronger-than-expected industrial production, slower retail sales, weak new yuan lending and continued housing-price declines, while exports benefited from artificial-intelligence demand. Investors were also monitoring high-level U.S.-China engagement ahead of a September 24 summit between Presidents Donald Trump and Xi Jinping. Economists generally expect targeted support rather than broad easing, though the latest outlook introduces a possibility of a year-end cut if domestic conditions weaken.