China's central bank eased its monetary policy stance for the second time this month by cutting its benchmark interest rate, the sixth time the rate was cut since it was introduced some 2-1/2 years ago.
The People's Bank of China (PBOC) lowered its Loan Prime Rate (LPR) on 1-year loans by 5 basis points to 3.80 percent and has now lowered it 55 points since it was introduced as the bank's benchmark interest rate in August 2019.
The People's Bank of China (PBOC) lowered its Loan Prime Rate (LPR) on 1-year loans by 5 basis points to 3.80 percent and has now lowered it 55 points since it was introduced as the bank's benchmark interest rate in August 2019.
LPR on loans 5 years or longer, which impacts mortgages, was unchanged at 4.65 percent.
Today's rate cut follows PBOC's 1/2 percentage point cut in the reserve requirement for most financial institutions on Dec. 6, which freed up 1.2 trillion yuan banks could use to support economic activity.
It was PBOC's second cut in the reserve requirement this year, following a similar-sized cut in July.
The last time PBOC lowered LPR was in April 2020 when it was cut for the second time that year in response to the outbreak of the COVID-19 pandemic.
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