BEIJING, July 22 (Bernama-Xinhua) -- China has lowered the market-based benchmark lending rate to align with expectations as authorities increase monetary support to boost the economy, reported Xinhua.
The one-year loan prime rate (LPR) came in at 3.35 per cent Monday, down from the previous reading of 3.45 per cent, according to the National Interbank Funding Centre.
The over-five-year LPR, on which many lenders base their mortgage rates, was lowered by 10 basis points to 3.85 per cent.
The monthly-released data is a pricing reference rate for banks and is based on rates of the People's Bank of China's (PBOC) open market operations.
To better manage expectations and connect the LPR release time with the market operations, the PBOC also announced to change the time of its monthly release of the rates to 9 am from 9:15 am roughly on 20th of each month.
The adjustment takes effect on Monday, the PBOC said.
Earlier on Monday, the central bank lowered the interest rate on seven-day reverse repos, a key short-term policy rate, from 1.8 per cent to 1.7 per cent, amid efforts to strengthen counter-cyclical adjustments to better support the real economy.
The PBOC conducted 58.2 billion yuan (about US$8.16 billion) of seven-day reverse repos at an interest rate of 1.7 per cent. It said the operation was to keep liquidity reasonable and ample in the banking system.
-- BERNAMA-XINHUA
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