The one-year loan prime rate in China was lowered by five basis points to 4.15 percent in November 20th 2019 from 4.20 percent at the previous monthly fixing. The one-year LPR has been lowered three times since it became the official lending benchmark in August and this week’s rate cuts suggest the central bank is keen to push ahead with lowering costs across the curve despite pressures on inflation from rising pork prices from an outbreak of African Swine Fever. At the same time, the five-year was slashed by the same margin to 4.80 percent from 4.85 percent. The People’s Bank of China (PBOC) on November 18th unexpectedly cut a closely watched lending rate, the first such cut in more than four years following a cut in the medium-term lending facility (MLF) in early November.
