The over-five-year LPR, on which many lenders base their mortgage rates, also remained unchanged from the previous reading of 3.6 per cent, according to the National Interbank Funding Centre.
The one-year loan prime rate (LPR) in China was 3.1 per cent today, unchanged from the previous month.
The over-five-year LPR also remained unchanged from the previous reading of 3.6 per cent, according to the National Interbank Funding Centre.
The average reserve requirement ratios for China’s financial institutions now stands at 6.6 per cent, offering room for further reduction.
The LPRs reflect the level of financing costs for households and businesses, with lower rates meaning less burdens on borrowers and stronger support for economic activity.
The People’s Bank of China (PBOC) guided the LPR downward last year, while implementing two reductions in both the reserve requirement ratios (RRRs) and policy interest rates to help sustain economic recovery.
The weighted average interest rate for new business loans fell to about 3.3 per cent in February, down by 40 basis points year on year (YoY), while the rate for new personal mortgages dropped to around 3.1 per cent YoY, a decline of 70 basis points.
The average RRR for China’s financial institutions now stands at 6.6 per cent, offering room for further reduction, a state-controlled news agency reported.
Fibre2Fashion News Desk (DS)
