PBOC cuts loan prime rate as headwinds rise

China cut loan prime rate (LPR), a newly reformed interest rate to guide banks’ loan price, on Wednesday to lower corporate financing cost and stabilize economic growth amid rising headwinds.

One-year LPR came in at 4.15 percent, down from 4.2 percent a month earlier, according to the National Interbank Funding Center. The above-five-year LPR stood at 4.8 percent, down from 4.85 percent a month earlier.

The People's Bank of China, the central bank, announced in August a plan to reform the LPR mechanism to better reflect market changes in its latest move to guide borrowing costs lower to support the real economy.