China 1-year loan prime rate stood at 3.8% pa in December
This came after China's central bank reduced the reserve requirement ratio by banks by 0.5 pp on December 15
China cut its benchmark lending rate Loan Prime Rate (LPR) for the first time since April 2020. The one-year LPR was lowered by 5 basis points to 3.85% while the five-year LPR stayed at 4.65% in December. This came after China's central bank reduced the reserve requirement ratio by banks by 0.5 pp on December 15.
Since August 2019, China’s LPR functions as a market-based reference for lenders to set their loan interest rates, which is the sum of the one-year MLF rate and a spread, generated from quotations from 18 designated banks.
Further data and analysis on China's economy are available on the CEIC China Economy in a Snapshot – Q4 2021 report.