China 1 and 5 year loan prime rates setting from the People's Bank of China
- 1 year 3.85%, prior 4.05%
- 5 year 4.65%, prior 4.75%
After the MLF rate (the one year lending rate) was cut last week this was expected.
The cut to the 5 year rate should be especially important for the property sector in the country, to give it a bit of a boost. The sector is an important driver of demand in China (not only building houses etc but furnishings etc.).
