Official announcements from the People's Bank of China or credible financial news outlets

China's PBOC Cuts One-Year and Five-Year Lending Rates by 25 Basis Points Amid Economic Slowdown

Oct 20, 2024, 08:53 PM

China's central bank, the People's Bank of China (PBOC), has cut its benchmark lending rates by 25 basis points, a move that was widely anticipated by the market. The one-year Loan Prime Rate (LPR) has been reduced from 3.35% to 3.1%, and the five-year LPR has been lowered from 3.65% to 3.60%. This rate cut comes amid ongoing economic challenges, including a struggling property sector and weaker consumer spending. The PBOC had earlier signaled its intention to lower interest rates and release liquidity into the financial system to boost domestic consumption and restore economic confidence. This move mirrors previous rate cuts made at the end of September as part of the central bank's broader agenda to stimulate economic growth.