Targeted economic steps: China cuts its benchmark lending rates to stabilise the property market
October 21, 2024
China has cut its benchmark lending rate after the central bank launched a series of measures to stimulate economic growth and prevent a property market crisis at the end of September. The one-year lending rate was lowered from 3.35% to 3.10%, while the five-year lending rate (LPR) was cut from 3.85% to 3.60%. The cut came at the upper end of the 20-25 basis point range indicated by People’s Bank of China Governor Pan Gongsheng in speeches since late September, and exceeded the 20 basis point cut expected by all 17 economists surveyed by Bloomberg.