China’s central bank cuts a benchmark rate for the first time since the pandemic



People walk past the headquarters of the People's Bank of China in Beijing.
During the height of the coronaviruses epidemic in the country, the central bank cut the benchmark lending rate for the first time since April 2020.

The one-year loan prime rate was lowered by the People's Bank of China. The five-year loan prime rate was not changed from the previous month.

According to data from Wind Information, the last time the central bank cut the one-year and five-year LPR was in April 2020.

The lending rates for household and corporate loans are affected by the LPR. The central bank cut the amount of cash banks need to have on reserve last week, marking the second such move this year.

China was the first major economy to recover from the Pandemic. Since July, growth has been dragged down by subdued consumer spending, Beijing's zero-tolerance policy for controlling subsequent outbreaks and tighter regulations in the real estate sector.

At the Chinese government's annual Central Economic Work Conference earlier this month, the country's top leaders emphasized that stability would be a greater focus next year.

According to state media, the meeting concluded that monetary policies should be flexible and appropriate.