China trims lending rates again

One week after surprise cuts in key rates
China trims lending rates again
A woman and her little daughter walking past the People's Bank of China

China trimmed its key lending rates again on Monday, one week after it cut interest rates in a surprise move.

The moves are seen as an attempt to revive credit demand and fire up the economy hurt by extended Covid lockdowns and property debt problems.

The People’s Bank of China (BOC) cut its five-year loan prime rate by 15 basis points to 4.30 percent from 4.45 percent and lowered its one-year loan prime rate by 5 basis points to 3.65 percent.

Most new loans in China are based on the one-year LPR.

Last week, the Chinese central bank lowered the rate of the one-year medium-term lending facility (MLF) loans to some financial institutions by 10 basis points. It also cut the seven-day reverse repo rate by 10 basis points to 2 percent.