China cuts bank lending rates to boost economy
Make us a preferred source
Make us a preferred source on Google
The news: China has cut its bank lending rates in another push to boost its economy, as anticipated.
The numbers: The one-year loan prime rate (LPR) was reduced by 25 basis points (bps) to 3.1% from 3.35% and the five-year LPR was cut by 25bps to 3.6%.
The context: The LPR cut is set by a group of big Chinese banks. The announcement followed measures outlined by the People’s Bank of China last month to encourage households and companies to borrow money. Those measures included lowering interest rates and unlocking liquidity.
During the third quarter, China’s gross domestic product grew 4.6%, marking a quarter-on-quarter slowdown. However, the country's statistics bureau said the economy has started to see positive changes during September due to new policy measures.
Last month, China announced a slate of new growth policy measures including a cut to its mortgage rate for existing housing loans.
