Economic Buzz: China Lowers 5-Year LPR To 4.45%

20 May 2022 , 12:34 PM

Chinese banks cut a key interest rate for long-term loans by a record amount, a move to reduce mortgage costs and boost weak loan demand amid a property slump and Covid lockdowns. The five-year loan prime rate, a reference for home mortgages, was lowered to 4.45% from 4.6%, down by the most since a revamp of the rate in 2019, according to a statement by the Peoples Bank of China. The one-year loan prime rate — the de facto benchmark lending rate — was kept unchanged at 3.7%. Powered by Commodity Insights