China Lowers LPR to 3.10% in Largest Rate Cut of the Year

Oct 21, 2024, 01:21 AM

The People's Bank of China (PBOC) cut its benchmark Loan Prime Rates (LPR) by 25 basis points on Monday, lowering the one-year LPR to 3.10% from 3.35%, exceeding market expectations of a cut to 3.15%. The five-year LPR was also reduced to 3.60% from 3.85%, more than the anticipated reduction to 3.65%. This marks the third LPR cut in 2024 and the largest decline to date, as authorities intensify monetary support to bolster the economy amid weakened profitability and efforts to revive economic growth and halt a housing market downturn. The reduction in the LPR is expected to lower borrowing costs for businesses and consumers, particularly in the property sector, potentially reducing monthly mortgage payments and stimulating demand.