China cuts key lending rates in surprise move

The People’s Bank of China (PBC) unexpectedly lowered short-term rates by 10 basis points and reduced benchmark lending rates. The one-year loan prime rate (LPR) decreased from 3.45 per cent to 3.35 per cent, affecting most loans in China.

The five-year LPR, which influences mortgage rates, also dropped by 10 basis points to 3.85 per cent.

A Reuters survey conducted last week found that 64 per cent of market participants anticipated no change to the LPRs.

Attribution: Reuters