Prime Loan Rate Cut in China
February 20, 2020
In response to the coronavirus outbreak in China that slammed economic activity, the central bank there cut its 5-year prime loan rate by five basis points to 4.75% and its one-year prime loan rate by 10 bps to 4.05%. The one year LPR had not been changed since a 5-basis point reduction in November and has altogether been lowered by 26 basis points in the past half year. Chinese growth slowed last year, but conditions had seemed to stabilize late in the year. Now the Covid-19 disease threatens that equilibrium.
Copyright 2020, Larry Greenberg. All rights reserved. No secondary distribution without express permission.
Tags: Peoples Bank of China
ShareThis
