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China’s central bank cut the one-year loan prime rate amid a slowing economy that has been dragged by a slump in the property sector.
The one-year LPR was lowered to 3.80% from 3.85% and the five-year LPR remained at 4.65%, the People’s Bank of China said Monday.
The previous time the central bank cut the LPR was April last year when the economy was hit by the pandemic shock.
“The cut reinforces our view that authorities are increasingly open to cutting interest rates amid looming economic headwinds,” ANZ Research said in a note.
Earlier this month, the PBOC reduced the reserve-requirement ratio by 0.5 percentage point, injecting liquidity into the financial system by lowering the amount of money banks are required to set aside. It followed a similar move in July.
