Five-year LPR Likely To Be Lowered - Journal

China’s five-year Loan Prime Rate is expected to be cut to help provide cheaper funding for major infrastructure projects and boost medium- and long-term borrowing by manufacturers and homebuyers, the China Securities Journal reported citing Wang Yunjin, senior researcher of Zhixin Investment Research Institute. He said the one-year LPR, sitting at 3.65%, may see limited downside as it is already lower than some banks’ medium- and long-term deposit rates and their large-denomination certificate of deposit rates. Though LPRs were kept unchanged this week, the one-year and five-year maturity have dropped by 15 and 35 bps respectively this year. This has driven down interest rates on loans.