China reduces standard lending rates for the first time in 7 months in the batch of Beijing’s growth

China has reduced major lending rates by 10 basis points on Tuesday, as Beijing is preparing efforts to strengthen its economy at a time when commercial tensions threaten to obstruct growth.

The Popular Bank of China has reduced the loan price for a year to 3.0 % from 3.1 %, and 5 years LPR to 3.5 % from 3.6 %.

This represents the first reduction in prices since the central bank 25-Basis-Point Mut in OctoberBeijing also intensifies the efforts to support its economy.

Standard lending rates – which are usually imposed on the best customers in banks – are calculated monthly based on the proposed prices of the designated commercial banks provided to PBOC.

For a year, LPR affects corporate loans and most of the household loans in China, while LPR for 5 years serves as a criterion for mortgage rates.

The price cuts came as a large group of state -backed commercial lenders to reduce their deposit rates by up to 25 basis points earlier on Tuesday in an attempt to protect the net interest margin, which paves the way for reducing major lending rates.

This is urgent news. Please update for updates.