China central bank cuts a key lending rate to help boost coronavirus-hit economy
China’s central bank has cut the loan prime rate on Thursday in a widely-anticipated step to help lower borrowing costs for businesses, and prop up the economy that is reeling from the coronavirus outbreak.
The one-year loan prime rate (LPR) was lowered by 10-basis points — from 4.15 percent in January to 4.05 percent in February. The five-year LPR was decreased by 5-basis points — from 4.8 percent to 4.75 percent.
The LPR is the interest rate that banks in China charge their most creditworthy customers. In August 2019, the People’s Bank of China (PBOC) changed the way commercial lenders set interest rates for loans.