China lowers 5-year loan prime rate by 25 basis points
Country aims to reduce financial costs to shore up credit and property markets
ISTANBUL
The People's Bank of China (PBoC) decreased China's five-year loan prime rate (LPR) by 25 basis points, from 4.2% to 3.95%, on Tuesday.
The one-year LPR was unchanged at 3.45%, according to the state-run news outlet Xinhua.
"The reduction in the over-five-year rate was within expectation, but the extent exceeded market expectation, analysts said, noting that the 25-basis-point drop marks the largest in recent years," it said.
The country aims to shore up credit and property markets by lowering the rate, which reduces financial costs, it added.
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