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China’s Banks Set to Cut Key Rates Amid Covid, Property Slumps

  • One-year LPR expected to be trimmed to 3.6%: Bloomberg survey
  • Borrowing demand boost seen limited as debt, income woes loom
A man rides a bicycle past the People's Bank of China (PBOC) headquarters in Beijing, China.

A man rides a bicycle past the People's Bank of China (PBOC) headquarters in Beijing, China.

Photographer: Qilai Shen/Bloomberg
Updated on

Chinese banks will likely trim their benchmark loan prime rates Monday for the first time in months to help spur borrowing demand and reverse a sharp slump in consumer and business sentiment.

The one-year loan prime rate -- the de facto benchmark lending rate for banks -- is expected to be cut by 10 basis points to 3.6%, according to all 20 economists polled by Bloomberg. That would be the first reduction in that rate since January.