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People's Bank of China Lowers 'De Facto Benchmark Rate' LPR by 10bp

Uk Jin

Summary

The People's Bank of China announced that it has lowered the Loan Prime Rate (LPR) to 3.00% for a one-year term and 3.50% for a five-year term.
This cut is the first in seven months since last October, with a reduction of 10bp each compared to the previous month.
The LPR is considered a de facto benchmark rate, indicating a monetary easing policy by China.

On the 20th, the People's Bank of China, the central bank of China, announced that it has set the Loan Prime Rate (LPR) at 3.00% for a one-year term and 3.50% for a five-year term. This is a reduction of 10bp (1bp=0.01% point) compared to the previous month.

The LPR had maintained a freeze stance for six months since November last year. This cut is the first in seven months since the LPR for one-year and five-year terms was reduced by 25bp last October.