China has reduced its market-based benchmark lending rates in a strategic move to stimulate economic activity, with the one-year loan prime rate (LPR) dropping to 3% from 3.1%. The over-five-year LPR – a critical reference for mortgage rates – also fell to 3.5% from 3.6%, according to data released by the National Interbank Funding Center on Tuesday.
The cuts come amid efforts to lower financing costs for businesses and households, particularly as the property sector seeks stabilization. Analysts suggest this adjustment reflects proactive monetary policy measures to address evolving domestic and global economic challenges while maintaining financial stability.
This rate reduction follows recent economic indicators showing moderated growth in industrial output and retail sales. The move is expected to benefit both commercial borrowers and prospective homebuyers, with major banks anticipated to adjust their lending rates accordingly in coming weeks.
