The loan prime rate (LPR) is a lending reference rate set monthly by 18 banks. The People’s Bank of China revamped the mechanism to price LPR in August 2019, loosely pegging it to the medium-term lending facility rate. Photo: Reuters The loan prime rate (LPR) is a lending reference rate set monthly by 18 banks. The People’s Bank of China revamped the mechanism to price LPR in August 2019, loosely pegging it to the medium-term lending facility rate. Photo: Reuters
The loan prime rate (LPR) is a lending reference rate set monthly by 18 banks. The People’s Bank of China revamped the mechanism to price LPR in August 2019, loosely pegging it to the medium-term lending facility rate. Photo: Reuters

China cuts lending rate to aid coronavirus-hit economy, but warned it ‘will only provide limited relief’

  • The one-year loan prime rate (LPR) was lowered by 10 basis points to 4.05 per cent, while the five-year LPR was lowered by five basis points to 4.75 per cent
  • The cut followed a similar move in the central bank’s medium-term lending rate on Monday as policymakers sought to ease the drag to businesses from the coronavirus

Topic |   Coronavirus pandemic
The loan prime rate (LPR) is a lending reference rate set monthly by 18 banks. The People’s Bank of China revamped the mechanism to price LPR in August 2019, loosely pegging it to the medium-term lending facility rate. Photo: Reuters The loan prime rate (LPR) is a lending reference rate set monthly by 18 banks. The People’s Bank of China revamped the mechanism to price LPR in August 2019, loosely pegging it to the medium-term lending facility rate. Photo: Reuters
The loan prime rate (LPR) is a lending reference rate set monthly by 18 banks. The People’s Bank of China revamped the mechanism to price LPR in August 2019, loosely pegging it to the medium-term lending facility rate. Photo: Reuters
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