Latest news with #lendingrates
South China Morning Post
21-05-2025
- Business
- South China Morning Post
With rates at 6-year low, mainland Chinese see 2 reasons not to buy new homes
China's move to cut key lending rates to a six-year low to revive the housing market is likely to generate a mild impact on home sales, with many prospective buyers still tightening their belts as years of economic slowdown threatens job security and erodes household wealth. Vicky Shi, who has been on the hunt for a new flat in Shanghai after welcoming two children into the family, said the rate cuts 'will not have a decisive impact' on buyers when confronted with big-ticket spending decisions, with the domestic economic climate compounded by a lingering trade war. 'The top priority for most people, including me, is job stability and future prospects,' the Shanghai resident said. 'If we have concerns in those areas, cutting interest rates won't make us decide any faster on home purchases.' Chinese households felt the brunt of economic slowdown during the Covid-19 pandemic, with the recovery momentum since upended by a bitter trade and tariff war with the US. The urban unemployment rate hit a two-year high of 5.4 per cent in February, while the nation's stock benchmark CSI 300 Index has declined 24 per cent over the past four years. The People's Bank of China cuts loan prime rates to a six-year low amid declines in property investment and home prices. A government report on Monday showed property investment nationwide slumped at an annual rate of 10.3 per cent in April, while sales of new residential units slipped 2 per cent in the first four months of this year. Over a four-year period, both have weakened by a cumulative 32 per cent and 46 per cent, respectively. The People's Bank of China (PBOC) on Tuesday lowered the one-year loan prime rate (LPR) to 3 per cent from 3.1 per cent, and the five-year rate to 3.5 per cent from 3.6 per cent. Both are now at their lowest levels since the LPR mechanism was revamped six years ago. The central bank had earlier trimmed the one-year rate by a quarter point in October.
Reuters
20-05-2025
- Business
- Reuters
China lowers benchmark lending rates for first time since October
SHANGHAI, May 20 (Reuters) - China cut benchmark lending rates for the first time since October on Tuesday, after Beijing announced sweeping monetary easing measures earlier this month to support the broad economy. The one-year loan prime rate (LPR) was lowered by 10 basis points to 3.0% from 3.1% previously, while the five-year LPR was reduced by the same margin to 3.5% from 3.6%. Most new and outstanding loans in China are based on the one-year LPR, while the five-year rate influences the pricing of mortgages. Chinese authorities have announced a raft of stimulus measures, including interest rate cuts and a major liquidity injection, as Beijing steps up efforts to soften the economic damage caused by the trade war with the United States.
Bloomberg
20-05-2025
- Business
- Bloomberg
Chinese Banks Lower Benchmark Lending Rates After Easing by PBOC
Chinese banks lowered their benchmark lending rates for the first time in seven months, in a move telegraphed by officials when they eased monetary policy to counter US tariffs. The one-year loan prime rate was lowered to 3% from 3.1% previously, according to a statement from the People's Bank of China on Tuesday. That's in line with the consensus forecast for a 10-basis-point reduction by economists polled by Bloomberg.
Reuters
19-05-2025
- Business
- Reuters
China's state banks will cut deposit rates on Tuesday, sources say
BEIJING, May 19 (Reuters) - China's major state banks will cut their deposit rates from Tuesday, three people with knowledge of the matter said, easing pressure on profitability as China reduces lending rates to boost a slowing economy. Banks including Industrial and Commercial Bank of China ( opens new tab, China Construction Bank ( opens new tab and Bank of China ( opens new tab will cut rates on some fixed-term deposits, said the sources, who declined to be named as they are not authorised to speak to media. The sources did not detail the scale of the rate cuts. The banks did not immediately reply to requests for comment. Chinese authorities announced a raft of stimulus measures earlier this month, including interest rate cuts and a major liquidity injection, as Beijing steps up efforts to soften the economic fallout from the trade war with the United States. People's Bank of China (PBOC) Governor Pan Gongsheng said a 10 basis point cut to the country's main seven-day reverse repo rate would lead to a reduction in the benchmark loan prime rate (LPR) of the same size. China is due to release its monthly LPR fixing at 0100 GMT. Reducing deposit rates would help banks lower their funding costs at a time when they are under pressure to support economic growth amid a property crisis, weak loan demand and record low interest margins.
