The People’s Bank of China on Monday cut its benchmark loan rate for the first time since April 2020 amid mounting economic pressures.
The bank lowered its one-year loan prime rate (LPR) by 5 basis points to 3.8%, down from 3.85%.
The bank decided to keep its five-year LPR unchanged at 4.65%.
In April 2020, the bank had lowered the one-year benchmark loan rate to 3.84% from 4.05%.
LPR, serving as the pricing reference for bank lending, is calculated by the National Interbank Funding Center since August 2019.