FX.co ★ China Lowers Lending Rates for First Time Since October

The People's Bank of China (PBoC) recently reduced key lending rates to unprecedented lows during the May adjustment, in alignment with market forecasts and signifying the first rate reduction since October. This decision is part of Beijing's broader monetary easing initiatives introduced earlier this month, aimed at reviving a sluggish economy and mitigating potential impacts from ongoing trade tensions with the U.S. The one-year loan prime rate (LPR), which serves as the benchmark for most corporate and household loans, was lowered by 10 basis points to 3.0%. Similarly, the five-year LPR, which influences mortgage rates, was decreased by the same margin to 3.5%.