China cuts benchmark rate 1st time since pandemic

ANKARA

The People’s Bank of China on Monday cut its benchmark loan rate for the first time since April 2020 amid mounting economic pressures.

The bank lowered its one-year loan prime rate (LPR) by 5 basis points to 3.8%, down from 3.85%.

The bank decided to keep its five-year LPR unchanged at 4.65%.

In April 2020, the bank had lowered the one-year benchmark loan rate to 3.84% from 4.05%.

LPR, serving as the pricing reference for bank lending, is calculated by the National Interbank Funding Center since August 2019.