Sat, 02 Jul 2022

Update: China lowers over-five-year loan prime rate

20 May 2022, 19:05 GMT+10

© Provided by Xinhua

BEIJING, May 20 (Xinhua) -- China on Friday cut a market-based benchmark lending rate, the latest move to shore up the economy.

The over-five-year loan prime rate (LPR), on which many lenders base their mortgage rates, was lowered by 15 basis points to 4.45 percent, according to the National Interbank Funding Center.

The one-year LPR stood at 3.7 percent, unchanged from a month earlier, said the center, which is authorized to unveil the rates by the country's central bank.

The reduction followed cuts in both the one-year and the over-five-year rates in January.

It reflects China's efforts to better support the real economy, boost effective demand, and stabilize economic growth, according to Wen Bin, chief analyst at China Minsheng Bank.

Wen expects that the country will continue to use monetary policies to enhance support for industries and companies in difficulty, and thus keep the economy running in a reasonable range.

Chinese Premier Li Keqiang on Wednesday called for ramping up efforts in the implementation of macro policies to stabilize the economy, highlighting efforts to stabilize the growth of market entities.

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