China lowered its lending benchmark rate on Wednesday, as widely expected, to reduce company funding costs and shore up an economy hurt by slowing demand and U.S. trade tariffs.
The one-year LPR, a rate set by the People’s Bank of China based on quotes from a panel of banks, fell five basis points to 4.15% from 4.20% in October. The five-year LPR was lowered by the same margin to 4.80% from 4.85%.
The cut is the second to a key Chinese rate this week and comes a day after central bank governor Yi Gang said Beijing would step up credit support.
With growth sliding to near 30-year lows and a partial trade deal with the United States proving elusive, China has slowly picked up its tempo of policy easing in recent weeks, with authorities pushing banks to keep supporting cash-strapped small- and medium-sized businesses.