The People's Bank of China (PBC) cut its one-year loan prime rate (LPR) by 10 basis points to stimulate domestic demand.
The one-year LPR was lowered to 3.0%, while the five-year LPR was reduced to 3.5% following bids from numerous Chinese banks.
This move is expected to boost lending activity, encourage consumer spending, and strengthen the national economic recovery, especially as China currently faces pressure from trade agreements with the US.
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