© 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…