China cuts lending benchmark, market sees more easing in 2022 By Reuters

China cuts lending benchmark, market sees more easing in 2022 By Reuters
China cuts lending benchmark, market sees more easing in 2022© Reuters. FILE PHOTO: People wearing face masks walk past the headquarters of Chinese central bank People’s Bank of China (PBOC), April 4, 2020. REUTERS/Tingshu Wang/File Photo

SHANGHAI (Reuters) – China cut its lending benchmark loan prime rate (LPR) for the first time in 20 months on Monday, in a bid to prop up growth in the slowing economy, although it remains wary of loosening conditions in the country’s highly leveraged property market.

The one-year LPR was lowered by 5 basis points to 3.80% from 3.85% previously, while the five-year LPR remained at 4.65%.

The reduction marks the first LPR cut since April 2020.

Twenty-nine out of the 40 traders and economists polled by Reuters last week predicted cuts in LPR.

Most new and outstanding loans in China are based on the one-year LPR while the five-year…

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