China Cuts Interest Rates for First Time Since October 2024

The People’s Bank of China cut its key interest rate for the first time in seven months, as a stronger yuan and easing trade tensions give policymakers room to ease monetary policy to support the economy.

The People’s Bank of China cut the one-year lending rate by 10 basis points to 3%. The bank also decided to lower the five-year lending rate (LPR) to 3.5%.

This represents the first rate cut by the Chinese central bank since a 25 basis point cut last October.

It’s worth noting that one-year interest rates cover corporate loans and most household loans, while five-year interest rates serve mortgage rates.