Chinese Banks Disappoint With Modest Cut to Five-Year Rate

  • One- and five-year rates reduced by 10 basis points each
  • Some economists had expected more support for housing
WATCH: Chinese banks followed the central bank by lowering their benchmark lending rates on Tuesday. Source: Bloomberg
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Chinese banks followed the central bank by lowering their benchmark lending rates on Tuesday, although a relatively modest reduction to the mortgage reference rate disappointed investors.

The one-year and five-year loan prime rates were reduced by 10 basis points each, according to a statement by the People’s Bank of China.