China cuts Loan Prime Rates: 1 year to 3.7% (from 3.8%) & 5 year to 4.6% (from 4.65%)

The cut to the 5-year LPR is the first since April of 2020. In December 2021 the 1-year was cut from 3.85% to 3.80% - cut a further 10bps today.

The cut to the 5-year is significant for the property sector. The 5-year rate influences the rate on mortgages.

The cuts were flagged, especially since the reduced rate on the latest MLF:

• The People's Bank of China cuts rates on MLF and RR

Earlier posts:

• Nomura expect China to cut its LPR rate again on Thursday (20 January)
• China financial media - analysts expect prime rate cut Thursday

• China Security Journal says PBOC likely to cut Loan Prime Rate today

• ICYMI - PBOC to open the taps, more policy easing is coming

• analysts expect prime rate cut Thursday