(Bloomberg) — Chinese banks have lowered their benchmark lending rates following the People’s Bank of China’s monetary easing in late September, as part of a series of measures aimed at restoring economic growth and stemming a slump in the real estate market. I pulled it down.
The prime rate for one-year loans was reduced from 3.35% to 3.10%, and the prime rate for five-year loans was reduced from 3.85% to 3.60%.
This rate cut is at the high end of the 20-25 basis point range that People’s Bank of China Governor Ban Gongsheng has predicted in speeches since late September, and the 20 basis point rate cut expected by 17 economists surveyed by Bloomberg. greater than the width. .
The cut in prime lending rates set by China’s major banking groups comes after the People’s Bank of China last month outlined a series of measures to encourage households and businesses to borrow. The measures include lowering interest rates and ensuring liquidity to promote bank credit.
The renminbi remained almost stable at around 7.12 yuan to the dollar. There was little movement in the morning, but the yield on 30-year government bonds remained almost unchanged at 2.3%.
At a September Politburo meeting, China’s top leaders called for deep interest rate cuts and measures to prevent further declines in the property market, the strongest pledge yet to stabilize the key sector. .
The larger-than-expected cut in prime rates should help stabilize the housing market, said Bruce Pan, chief China economist at Jones Lang LaSalle.
Original article: Chinese banks lower lending rates to support struggling economy (2)
–With contributions from Iris Ouyang, Wenjin Lv, and Shulun Huang.
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