China has reduced its market-based benchmark lending rates, according to the National Interbank Funding Center. The one-year loan prime rate (LPR) has been lowered to 3.35 per cent, down from the previous 3.45 per cent. Additionally, the over-five-year LPR, which many lenders use to set mortgage rates, has been reduced by 10 basis points to 3.85 per cent.

These monthly rates serve as a pricing reference for banks and are derived from the People's Bank of China's (PBOC) open market operations.

In a move to further support the real economy, the PBOC has also decreased the interest rate on seven-day reverse repos from 1.8 per cent to 1.7 per cent. This short-term policy rate adjustment is part of the central bank's efforts to strengthen counter-cyclical measures.

The central bank conducted seven-day reverse repos amounting to 58.2 billion yuan (approximately $8.16 billion) at the new interest rate of 1.7 per cent, according to Chinese media reports.

Fibre2Fashion News Desk (DP)