Agencies
China cut two key lending rates at the monthly fixing on Monday, in line with expectations, marking the latest move by Beijing to spur growth following reductions to other policy rates last month as part of a broader package of stimulus measures.
The one-year loan prime rate (LPR) was lowered by 25 basis points to 3.10% from 3.35%, while the five-year LPR was cut by the same margin to 3.6% from 3.85% previously.
The lending rates were last cut in July.
People’s Bank of China (PBOC) Governor Pan Gongsheng told a financial forum last week lending rates will decrease by 20 to 25 basis points on Oct. 21.
The PBOC announced cuts to banks’ reserve requirement ratio by 50 basis points and the benchmark seven-day reverse repo rate by 20 basis points on Sept. 24, kicking off the most aggressive stimulus since the pandemic, including measures to support the ailing property sector and boost consumption.
It also cut the medium-term lending facility rate by 30 basis points last month.
