China cuts benchmark lending rates for 3rd time in ’24

China’s central bank cut its benchmark lending rates for the third time this year on Monday to stimulate economic growth by reducing financing costs and encouraging borrowing, consumption, and investment.

The one-year loan prime rate (LPR) reduced to 3.1 per cent from 3.35 per cent, while the over-five-year LPR, used for mortgage rates, lowered to 3.6 per cent from 3.85 per cent.

The rate cuts follow the central bank’s decision on September 27 to lower the interest rate of seven-day reverse repos, a key short-term policy rate, by 20 basis points. This initial rate reduction paved the way for the subsequent cuts in the LPR.

Attribution: The State Council statement

Subediting: M. S. Salama