Chinese National Bank announces lower interest rates

CNB bank reports about limitations in advantage rates. The rate on annual loans was lowered by 0.1 percentage points to 3.7%. The rate on 5-year loans was lowered by 0.05 percentage points to 4.6%. Central Bank representative Liu Guoqiang spoke at the briefing. He stated that the CNB plans to act more effectively and decisively to support the government’s efforts to stabilize the economic situation. Liu Guoqiang also noted that the Central Bank supports the issuance of loans from financial institutions. He intends to provide a sufficient amount of liquidity with the appropriate measures at his disposal. Almost three years ago, the Chinese National Bank carried out a reform in the advantage rate system, as a result of which LPR became the benchmark for issuing lending. In the difficult year 2020, the annual lending prime ratio was reduced by 0.3 percentage items, and the 5-year LPR by 0.15 percentage items.

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Arseny Kudrin

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