PBOC cuts benchmark lending rates as expected

21st Oct 2024 07:53

(Sharecast News) - The People's Bank of China said on Monday that it was cutting its two benchmark lending rates by 25 basis points.

The one-year and five-year loan prime rates were reduced from 3.35% and 3.85% to 3.10% and 3.6%, respectively, in line with market expectations.

Danske Bank said: "This comes as China seeks to support growth and stabilize the faltering property sector. The one-year LPR primarily affects corporate loans and most household loans, whereas the five-year LPR serves as a benchmark for mortgage rates."