China’s loan prime rate (LPR) is technically decided by a group of 18 banks, but the cost is widely regarded to be an indicator for Beijing’s preference on loan rates. Photo: AP
China’s loan prime rate (LPR) is technically decided by a group of 18 banks, but the cost is widely regarded to be an indicator for Beijing’s preference on loan rates. Photo: AP

China loan rate in spotlight as investors seek clues on health of world’s second-largest economy

  • China’s loan prime rate (LPR) could be lowered for the first time since early last year on Tuesday
  • The LPR, which currently stands at 3.85 per cent, is seen as China’s de facto benchmark funding cost since 2019 and is released on the 20th of each month

China’s loan prime rate (LPR) is technically decided by a group of 18 banks, but the cost is widely regarded to be an indicator for Beijing’s preference on loan rates. Photo: AP
China’s loan prime rate (LPR) is technically decided by a group of 18 banks, but the cost is widely regarded to be an indicator for Beijing’s preference on loan rates. Photo: AP
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