(PBC) The People’s Bank of China has reduced its one-year loan prime rate from 3.85% to 3.8%, marking the first cut since April last year at the height of the coronavirus.
The LPR reduction happens when China experiences sluggish growth amid low domestic spending. China also reduced the bank reserves last week in a bid to add liquidity to the economy.
The rate cut reflects growing focus by Beijing to maintain “prudent and flexible” monetary policy level as top officials call for economic stability.
PBOC officials still maintained the five-year loan prime rate at 4.65%.
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