Link Securities | The People’s Bank of China (PBoC) kept its benchmark interest rates at record lows for the eighth consecutive month early this morning, in line with market forecasts, after previous reductions in the central bank’s lending and rediscount rates took effect. Last Thursday, the PBoC announced cuts in sector-specific interest rates of 25 basis points, effective 19 January, to provide an initial boost to the economy in the financial year.
Specifically, the 1-year loan prime rate (LPR), which is the benchmark for most corporate and household loans, remained at 3.0%, while the 5-year loan prime rate (LPR), which is the benchmark for mortgages, remained unchanged at 3.5%. Both rates recorded a 10 basis point decline in May.
