China lowers benchmark lending rates by 10 basis points

China’s benchmark lending rates were lowered Tuesday as expected, in a bid to support the nation’s slowing economic recovery.

This was the first cut in the benchmark loan rates since August 2022, as Beijing moved to roll out more measures to buoy growth.

Both short- and long-term benchmark lending rates were lowered by 10 basis points, as expected by the market. The one-year loan prime rate was cut to 3.55% and the five-year rate was cut to 4.2%, the People’s Bank of China said.

Last week, China’s central bank lowered two key policy rates–the one-year medium-term lending facility rate and the standing lending facility–by 10 basis points each, a move seen as guiding down banks’ lending rates.

The loan rate cuts also came after Chinese commercial banks lowered deposit rates offered for their customers.

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