top of page

For The Second Time This Year, China Lowers LPR Rates.

London, Monday, 22 August 2022

In an effort to boost borrowing demand in the face of ongoing COVID-19 outbreaks and a persistent real estate slowdown, the People's Bank of China decreased its key lending prime rates (LPR) at the August fixing, the second decrease of the year.

The 5-year LPR, which affects the cost of home mortgages, was cut for the second time this year by 15 bps to 4.30%, while the one-year LPR, which is used for business and family loans, was decreased by 5 bps to a record low of 3.65%.

After July statistics revealed the Chinese economy was losing steam amid sluggish global growth, the central bank last week surprisingly cut the rate on the one-year medium-term lending facility (MLF) and another short-term liquidity tool.

(Source: People's Bank of China // Report by: The Decision Maker – Finance editors)


bottom of page