China cuts lending rates by 0.25%

China on Monday 21st October 2024 lowered its main benchmark lending rates by 0.25%

The People’s Bank of China (PBOC) has announced a reduction in the one-year loan prime rate (LPR) to 3.1% and the five-year LPR to 3.6%.

The one-year LPR affects corporate and most household loans in China, whereas the five-year LPR is a reference for mortgage rates.

This adjustment was anticipated. The governor of China’s central bank reportedly on Friday 18th October 2024 hinted at a forum in Beijing that the loan prime benchmark rates would decrease by 0.20% to 0.25%.