China slashes medium-term lending rate for 1st time in 10 months

By Tuba Ongun

ANKARA (AA) - The People’s Bank of China on Thursday cut medium-term lending rate – one-year loan prime rate (LPR) – for the first time in 10 months as post-COVID recovery lost momentum.

The rate was lowered by 10 basis points to 2.65%, the first cut since August 2022.

Earlier this week, the central bank unexpectedly cut its short-term policy rate – 7-day reverse repurchase rate – by 10 basis points from 2% to 1.9%.

Following the move, the dollar rose 0.2% against the Chinese yuan to 7.1744.