PBOC cuts loan prime rates (LPR) for 1-year, 5-year

China’s central bank cut its benchmark lending rates again on Thursday amid concerns about an economic slowdown in the world’s second-largest economy.

The People’s Bank of China slashed the one-year loan prime rate by 10 basis points from 3.8% to 3.7%.

The five-year loan prime rate was reduced by 5 basis points from 4.65% to 4.6% — it was the first cut since April 2020, at the height of the coronavirus pandemic in the country.

Last month, the PBOC cut the one-year loan prime rate for the first time since April 2020.

Loan prime rates affect the lending rates for corporate and household loans in the country.

Most new and outstanding loans in China are based on the one-year LPR, but the five-year rate influences the pricing of home mortgages, according to Reuters.

This is a breaking news. Please check back for updates.

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