In the News: Loan Rates Cut; Lingang Development Plans; and Benchmarks for Administrative Discretion

August 24, 2022 | BY

Hugo Yeung

Loan prime rates slightly lowered; 3-year development blueprint for the Lingang Free Trade Zone unveiled; New rules on exercise of administrative discretion

Credit: ALM

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Loan Prime Rates Lowered

On August 22, the People's Bank of China (PBOC) lowered the one-year and five-year loan prime rates (LPR).

The one-year LPR was lowered from 3.7% to 3.65% while the five-year LPR was cut by 15 basis points from 4.45% to 4.30%. The one-year LPR, on which most new loans are based, was last adjusted in January. Commentators are quick to draw parallels between this move and faltering business and consumer demand for credit caused by the looming threat of a property debt crisis and a resurgence in COVID-19 cases and lockdowns.

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