The People’s Bank of China (PBoC) slashed two key lending rates for the first time in ten months at the June fixing, as authorities seek to prop up growth, in line with market expectations. The one-year loan prime rate (LPR), which is the medium-term lending facility used for corporate and household loans, was lowered by 10bps to 3.55%; while the five-year rate, a reference for mortgages, was trimmed by the same margin to 4.2%. The move came after two previous easing decisions last week.
