China has cut its benchmark lending rate for corporate and household loans for a second straight month on Thursday. Mortgage reference rates has been lowered for the first time in nearly two years.
The one-year loan prime rate (LPR) was lowered by 10 basis points to 3.70% from 3.80% and the five-year LPR was reduced by 5 basis points to 4.60% from 4.65%.
The cut to the five-year LPR was the first reduction since April 2020. Cut in LPR rate follows comments by officials earlier of monetary easing to boost property market.
People’s Bank of China Vice Governor Liu Guoqiang said, “should hurry up, make our operations forward-looking, move ahead of the market curve, and respond to the general concerns of the market in a timely manner,”.
