Market-based benchmark lending rates reduced in China

The over-five-year LPR, on which several lenders base their mortgage rates, was reduced to 3.6 per cent from 3.85 per cent, the National Interbank Funding Centre announced.

The third cut this year is expected to reduce financing costs, support the recovery of credit demand and further fuel consumption and investment growth, a state-controlled news agency reported.

The decision followed the central bank’s lowering of the interest rate of seven-day reverse repos, a key short-term policy rate, by 20 basis points on September 27, guiding the LPR to move downward.

ALCHEMPro News Desk (DS)