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PBoC cuts loan prime rates

Reductions in benchmark lending rates follow recent stimulus measures

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China’s central bank reduced benchmark lending rates by 25 basis points today (October 21), in the latest in a series of measures aimed at stimulating the economy.

The one-year loan prime rate (LPR) was cut from 3.35% to 3.1%, while the five-year LPR was lowered from 3.85% to 3.6%, the People’s Bank of China (PBoC) said in a statement.

Most new and outstanding loans in China are based on the one-year LPR, while the five-year rate influences the pricing of mortgages.

LPRs are normally charged to

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