China c.bank cuts lending benchmark slightly, as expected

Credit: REUTERS/FLORENCE LO

Repeats to attach to alerts

SHANGHAI, Nov 20 (Reuters) - China's central bank cut its new benchmark lending rate on Wednesday for the third time since its debut in August, as widely expected, as the authorities move to lower financing costs to the real economy.

The one-year loan prime rate (LPR) CNYLPR1Y=CFXS was lowered by five basis points to 4.15% from 4.20% at the previous monthly fixing. The five-year LPR CNYLPR5Y=CFXS was also lowered by the same margin to 4.80% from 4.85%.

All 64 respondents in a Reuters snap survey on Tuesday expected a reduction in the one-year LPR. Thirty-seven respondents also expected another cut in the five-year LPR.

The LPR is a lending reference rate set monthly by 18 banks. The People's Bank of China revamped the mechanism to price LPR in August, loosely pegging it to the medium-term lending facility rate.

(Reporting by Winni Zhou and John Ruwitch Editing by Jacqueline Wong)

((winni.zhou@thomsonreuters.com; +86 21 2083 0100; Reuters Messaging: winni.zhou.thomsonreuters.com@reuters.net))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Tags

More Related Articles

Sign up for Smart Investing to get the latest news, strategies and tips to help you invest smarter.