International News 23 September 2025
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China Holds Loan Prime Rate Steady for Fourth Month
China kept its benchmark loan prime rate (LPR) unchanged for September 2025, marking the fourth consecutive month without a rate cut. The People’s Bank of China set the one-year LPR at 3.0% and the five-year LPR at 3.5% on Monday (22/9). The one-year LPR serves as the reference for most new and outstanding loans, while the five-year rate is the basis for mortgage pricing. A Reuters survey of 20 market participants had unanimously projected no change, despite recent signs of economic weakness. The decision underscores Beijing’s cautious stance as it navigates a fragile recovery. While policymakers face mounting pressure from soft economic data, the unchanged LPR suggests a preference for stability over aggressive easing, particularly amid concerns about capital outflows and currency weakness. The move reflects China’s balancing act—supporting growth without undermining financial stability—as the world’s second-largest economy continues to struggle with property sector stress and subdued consumer demand.
Dollar Holds Steady as Markets Await Fed Officials’ Speeches
The U.S. dollar stabilized on Monday (22/9/2025) in early Asian trade, with investors awaiting a series of speeches from Federal Reserve officials this week that could provide fresh guidance on interest rate policy. The dollar index edged up to 97.75, extending its rebound from last week’s sharp drop after the Fed’s rate cut. The euro slipped slightly to US$1.1738, sterling fell to a two-week low of US$1.3458 on domestic fiscal concerns, and the yen weakened to 148.22 per dollar as markets priced in a possible Bank of Japan rate hike. Traders are particularly focused on remarks from Fed Chair Jerome Powell and newly appointed Governor Stephen Miran, who recently called for a more aggressive 50 bps cut while defending his independence from political influence. Markets see potential for further volatility in FX trading as around 10 Fed officials speak throughout the week. In Asia, the yuan was steady after China kept its loan prime rates unchanged for the fourth straight month, aligning with expectations and reflecting continued caution amid a sluggish economic recovery.
Gold Holds Near Record Highs Ahead of Key U.S. Inflation Data
Gold prices hovered close to record levels on Monday (22/9/2025) as investors awaited U.S. inflation data and remarks from Federal Reserve officials. Spot gold rose 0.1% to US$3,689.08 per ounce, after briefly hitting a record US$3,707.40 last week, while December futures gained 0.5% to US$3,724.50. Market attention is on Friday’s release of the U.S. core Personal Consumption Expenditure (PCE) index, the Fed’s preferred inflation gauge, which will shape expectations for further policy easing. The Fed recently cut rates by 25 basis points and signaled more potential cuts, though it remains cautious on persistent inflation. So far in 2025, gold has surged over 40%, supported by geopolitical tensions, economic uncertainty, and strong central bank buying. Lower interest rates have further boosted demand for the non-yielding safe-haven asset, with holdings in SPDR Gold Trust—the world’s largest gold-backed ETF—jumping nearly 2% in a single day to 994.56 tons, the highest this year. Silver also climbed to US$43.12 per ounce, its strongest level in 14 years, while platinum and palladium saw mixed movements. With the Fed expected to cut rates again in October and December, gold’s bullish momentum remains firmly in place.