China's central bank cuts interest rates

China has boosted real estate financing by cutting key credit rates for the first time since June. The People’s Bank of China lowered its five-year benchmark interest rate for the first time since June, while leaving the one-year maturity unchanged. The five-year lending rate (LPR) was cut by 25 basis points to 3.95 percent from 4.20 percent, while the one-year lending rate, which is fixed for most household and corporate loans in China, was left unchanged at 3.45 percent. Economists had forecast a 5-15 basis point cut to the five-year LPR. “I think this 25 basis point cut this time is definitely a very positive sign from my perspective,” said William Ma, chief investment officer of Grow Investment Group. The 25 basis point cut to the five-year LPR was the biggest LPR cut since China overhauled its credit pricing mechanism in 2019. China last cut the five-year LPR by 10 basis points in June 2023.