People's Bank of China benchmark rates setting.
- 1 year at 3.7%, unchanged
- 5 year at 4.45%, a 15bp cut ... The LPRs were first introduced in August 2019, this is the biggest cut since introduction.
- In April the one-year loan prime rate was held at 3.70% while the five-year remained at 4.60%. The previous time there was a change was when the rates were trimmed slightly in January this year.
The LPRs are benchmark lending rates, set on the 20th of each month. 18 commercial banks in China submit their proposed rates to the People's Bank of China. The LPRs are based on the current rate charged for the PBOC Medium-term Lending Facility (MLF).
The PBOC has also pledged more easing to stabilize the economy.
Background to this is here: