Economics
China Benchmark Loan Rate Drops After PBOC Eases Policy
- One-year LPR set at 4.05% for February, versus earlier 4.15%
- A major health crisis has brought the country to a standstill
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China’s banks lowered the benchmark borrowing costs for new corporate and household loans after Beijing slashed a range of policy rates this month to blunt the economic impact of a deadly virus outbreak.
The one-year loan prime rate was lowered to 4.05% from 4.15%, according to a statement from the central bank on Thursday. The five-year tenor was set at 4.75%, down from 4.8%. Earlier this month, the central bank cut the rates on its short-term funds and one-year loans to commercial lenders.