The five-year loan prime rate was reduced by 5 basis points from 4.65% to 4.6% — it was the first cut since April 2020, at the height of the coronavirus pandemic in the country.Loan prime rates affect the lending rates for corporate and household loans in the country.
Most new and outstanding loans in China are based on the one-year LPR, but the five-year rate influences the pricing of home mortgages, according to Reuters.
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