China lowers benchmark lending rates for first time since October

[SHANGHAI] China cut benchmark lending rates for the first time since October on Tuesday, after Beijing announced sweeping monetary easing measures earlier this month to support the broad economy.

The one-year loan prime rate (LPR) was lowered by 10 basis points to 3.0 per cent from 3.1 per cent previously, while the five-year LPR was reduced by the same margin to 3.5 per cent from 3.6 per cent.

Most new and outstanding loans in China are based on the one-year LPR, while the five-year rate influences the pricing of mortgages.

Chinese authorities have announced a raft of stimulus measures, including interest rate cuts and a major liquidity injection, as Beijing steps up efforts to soften the economic damage caused by the trade war with the United States. REUTERS