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Chinese Banks Cut Borrowing Costs as PBOC Signals Easing

  • One-year, five-year loan prime rates lowered on Thursday
  • Central bank has pledged more policy easing as growth slows
Updated on

Chinese lenders lowered borrowing costs for a second straight month after the central bank cut policy loan rates and pledged more easing to stabilize the economy.

The one-year loan prime rate was cut by 10 basis points to 3.7% on Thursday, in line with forecasts in a Bloomberg survey of economists. The five-year rate, a reference for long-term loans including mortgages, was lowered by 5 basis points to 4.6%, a smaller reduction than predicted.