China Lowers Benchmark Lending Rates Amid Economic Stimulus Efforts

China

China: On October 21, China reduced its benchmark lending rates as expected, continuing a series of aggressive stimulus measures aimed at reviving economic growth. The People's Bank of China (PBOC) cut the one-year loan prime rate (LPR) by 25 basis points to 3.10% and the five-year LPR by the same margin to 3.6%. This follows reductions in September, including a 50-basis point cut to banks' reserve requirement ratio and a 30-basis point cut to the medium-term lending facility rate. 

Governor Pan Gongsheng had previously indicated the rate cuts, which are designed to support the property sector and stimulate consumption.  

Despite a stronger-than-expected economic performance in Q3, property investment has declined by over 10%, with officials signalling further easing, including another reserve ratio cut by year-end. 

Source: Reuters