China lowers 5-year loan prime rate by 25 basis points

By Gokhan Ergocun

ISTANBUL (AA) - The People's Bank of China (PBoC) decreased China's five-year loan prime rate (LPR) by 25 basis points, from 4.2% to 3.95%, on Tuesday.

The one-year LPR was unchanged at 3.45%, according to the state-run news outlet Xinhua.

"The reduction in the over-five-year rate was within expectation, but the extent exceeded market expectation, analysts said, noting that the 25-basis-point drop marks the largest in recent years," it said.

The country aims to shore up credit and property markets by lowering the rate, which reduces financial costs, it added.