China slashes over-5-year LPR to 3.95%

While the over-five-year LPR saw a significant cut, the one-year LPR, a key rate for short-term borrowing, remains steady at 3.45 per cent.

The reduction in the LPR is anticipated to lower the cost of financing for both businesses and individuals. This strategic rate cut comes at a critical time as China seeks to ensure a steady economic recovery in early 2024, following previous adjustments to the LPR in August last year. At that time, the one-year rate was reduced to 3.45 per cent from 3.55 per cent, while the over-five-year rate remained unchanged at 4.2 per cent, according to Chinese media reports.

ALCHEMPro News Desk (DP)