China Loan Prime Rate

The People’s Bank of China at the December fixing slashed its one-year loan prime rate by 5 bps to 3.80 percent, the first such move since April 2020, in a bid to support growth in the slowing economy amid property debt woes and persistent COVID-19 outbreaks. The move followed an early decision by the central bank to lower the RRR by 50 bps that came into effect on December 15th and freed up CNY 1.2 trillion in long-term liquidity. At the same time, the five-year LPR was left unchanged at 4.65 percent, suggesting Beijing prefers not to use the property sector to stimulate economic growth. Policymakers are seen easing monetary policy further in 2022, with some analysts predicting a further 45 bps of cuts to the one-year LPR next year. Interest Rate in China averaged 4.49 percent from 2013 until 2021, reaching an all time high of 5.77 percent in April of 2014 and a record low of 3.80 percent in December of 2021. The People’s Bank of China (PBOC) on August 17th, 2019, designated the Loan Prime Rate (LPR) the new lending benchmark for new bank loans to households and businesses, replacing the central bank’s benchmark one-year lending rate. The rate is based on a weighted average of lending rates from 18 commercial banks, which will submit their LPR quotations, based on what they have bid for PBOC liquidity in open market operations, to the national interbank funding center before 9am CST on the 20th of every month. This page provides the latest reported value for — China Interest Rate — plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news.

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