China's central bank cuts key lending rates, including one for the first time in nearly 2 years - CNBC

The People's Bank of China reduced the one-year loan prime rate by 10 basis points from 3.8% to 3.7%.

In December, the PBOC cut the one-year loan prime rate for the first time since April 2020.

The five-year loan prime rate was lowered by 5 basis points from 4.65% to 4.6% — it was the first cut since April 2020, at the height of the coronavirus pandemic in the country.

Loan prime rates (LPR) affect the lending rates for corporate and household loans in the country.

Most new and outstanding loans in China are based on the one-year LPR, but the five-year rate influences the pricing of home mortgages, according to Reuters.

The PBOC said it was reducing the interest rate on 700 billion yuan ($110.33 billion) worth of one-year medium-term lending facility loans by 10 basis points from 2.95% to 2.85%.