China’s central bank cut its new benchmark lending rate on Wednesday for the third time since its debut in August, as widely expected, Reuters reports.
The one-year loan prime rate (LPR) was lowered by five basis points to 4.15 percent from 4.20 percent at the previous monthly fixing. The five-year LPR was also lowered by the same margin to 4.80 percent from 4.85 percent.
All 64 respondents in a Reuters snap survey on Tuesday expected a reduction in the one-year LPR. Thirty-seven respondents also expected another cut in the five-year LPR.
The LPR is a lending reference rate set monthly by 18 banks. The People’s Bank of China revamped the mechanism to price LPR in August, loosely pegging it to the medium-term lending facility rate.
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