The Chinese central bank wants to boost the country’s economy.
(Photo: dpa)
Beijing Against the background of the sluggish economic recovery after the end of the corona pandemic, the Chinese central bank lowered two key interest rates for the first time in ten months.
The key one-year LPR (Loan Prime Rate) fell 10 basis points to 3.55 percent, the five-year prime rate also fell 10 basis points to 4.20 percent from 4.30 percent, official data showed on Tuesday. According to a Reuters poll, the markets had expected both interest rates to be cut.
Most loans in China are based on the one-year LPR rate, the key rate for five-year loans affects mortgages. China last lowered both LPRs in August 2022 to stimulate the economy.
More: High key interest rates have lost their terror for the markets