SHANGHAI/SINGAPORE: China cut two key benchmark lending rates for the first time in 10 months on Tuesday, as authorities seek to shore up a slowing recovery in the world's second-largest economy.
The one-year loan prime rate (LPR) was lowered by 10 basis points to 3.55 per cent, while the five-year LPR was cut by the same margin to 4.2 per cent from 4.3 per cent.
A Reuters poll of 32 market participants showed all respondents expected reductions to both rates.
Most new and outstanding loans in China are based on the one-year LPR, while the five-year rate influences the pricing of mortgages. China last cut both LPRs in August 2022 to boost the economy.