Central Bank of China lowers key lending rate by 0.10% – Kommersant
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People’s Bank of China lowered the key refinancing rate – the annual lending rate for prime borrowers (LPR) – by 10 basis points, to 3.55%. This is the second reduction in the key lending rate in the country over the past three months. Prior to that, she was downgraded to June – also by 0.1%. Analysts polled by Reuters were confident that this time the rate would be cut by 0.15%.
Analysts were also surprised by the Central Bank’s decision not to change the five-year lending rate, which banks are guided by when issuing mortgage loans to customers. It remained at the level of 4.2%.
The decision of the Central Bank caused the decline of the Shanghai Composite and CSI 300 by 1.2-1.5%, the yuan continued its fall against the dollar, falling by 0.3%, and 10-year Chinese government bonds fell to 2.56% – the lowest level in the last three years.
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