The Chinese mainland has announced a reduction in its market-based benchmark lending rates, marking the third cut this year. The one-year loan prime rate (LPR) has been decreased to 3.1 percent from 3.35 percent, while the over-five-year LPR, which influences many mortgage rates, was lowered to 3.6 percent from 3.85 percent.
This strategic move aims to lower financing costs and stimulate both consumption and investment growth across the economy. Bruce Pang, chief economist of JLL Greater China, commented on the development, noting that the 25-basis-point cut was slightly larger than market expectations.
\"The Chinese government maintains a strong monetary policy while promoting the stabilization and recovery of the property market,\" Pang stated. He further emphasized that unlike many other economies, the Chinese mainland does not lower interest rates frequently, making each rate cut significant and impactful.
The National Interbank Funding Center confirmed the adjustments, reflecting the government's commitment to fostering economic resilience and supporting key sectors during this period of recovery.
Reference(s):
cgtn.com
