{"id":169070,"date":"2020-04-20T12:35:36","date_gmt":"2020-04-20T16:35:36","guid":{"rendered":"https:\/\/www.countingpips.com\/?p=169070"},"modified":"2020-04-20T12:10:06","modified_gmt":"2020-04-20T16:10:06","slug":"china-cuts-lpr-20-bps-to-3-85-2nd-cut-this-year","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2020\/04\/china-cuts-lpr-20-bps-to-3-85-2nd-cut-this-year\/","title":{"rendered":"China cuts LPR 20 bps to 3.85%, 2nd cut this year"},"content":{"rendered":"<div id=\"inves-742158124\" class=\"inves-below-title-posts inves-entity-placement\"><div id =\"posts_date_custom\"><div align=\"left\">April 20, 2020<\/div><hr style=\"border: none; border-bottom: 3px solid black;\">\r\n<\/div><\/div><p>By <a href=\"http:\/\/www.centralbanknews.info\/\"><u>CentralBankNews.info<\/u><\/a><br \/>\nChina&#8217;s central bank lowered its benchmark interest rate for the second time this year, cutting the one-year Loan Prime Rate (LPR) by 20 basis points to 3.85 percent and the five-year LPR, used to price mortgages, by 10 basis points to 4.65 percent, as widely expected.<br \/>\nOn Feb. 20 the People&#8217;s Bank of China (PBOC) cut LPR by 10 basis points, brining this year&#8217;s total cut in LPR to 30 basis points.<br \/>\nIt is PBOC&#8217;s fourth cut in LPR since it was introduced in August 2019 as its new benchmark lending rate and since then China&#8217;s main lending rate has been cut an effective 50 basis points.<br \/>\nToday&#8217;s cut in LPR follows a 20 basis point cut in the 1-year medium-term-lending (MLF) rate to 2.95 percent on April 15, the lowest level since it was introduced in September 2014.<br \/>\nIn August last year PBOC restructured its method for calculating LPR and set it as a spread to MLF. It also designated LPR as its new benchmark lending rate.<br \/>\nA few days later PBOC set LPR at 4.25 percent, 10 basis points below the previous benchmark lending rate of 4.35 percent.<br \/>\nLPR was then cut 5 basis points in September 2019 and then another 5 points in November 2019, a few weeks after the MLF rate also was cut 5 points.<br \/>\nOn Feb. 17 this year MLF was lowered 10 basis points and then a few days later on Feb. 20 PBOC cut LPR by the same 10 basis points.<br \/>\nPBOC announces LPR on the 20th of each month and in March it was left unchanged.<\/p>\n<p><a href=\"http:\/\/www.centralbanknews.info\/\">www.CentralBankNews.info<\/a><\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>By CentralBankNews.info China&#8217;s central bank lowered its benchmark interest rate for the second time this year, cutting the one-year Loan Prime Rate (LPR) by 20 basis points to 3.85 percent and the five-year LPR, used to price mortgages, by 10 basis points to 4.65 percent, as widely expected. On Feb. 20 the People&#8217;s Bank of [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-169070","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/169070","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=169070"}],"version-history":[{"count":2,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/169070\/revisions"}],"predecessor-version":[{"id":169087,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/169070\/revisions\/169087"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=169070"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=169070"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=169070"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}