While China accelerated its efforts to stimulate loan demand in the economy, which was hampered by the real estate crisis and the resurgence of the pandemic, it went to a new interest rate cut after the measures announced last week.
The People's Bank of China lowered the one-year loan prime rate (LPR) by 5 basis points to 3.65 percent, and the five-year LPR rate by 15 basis points to 4.30 percent.
The People's Bank of China last lowered the one-year LPR in January and the five-year LPR in May. The five-year LPR rate affects the cost of home loans.
The lower interest rate used by 18 banks as the reference rate means lower borrowing costs for companies and consumers.
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