Overview

• The People's Bank of China lowered the one-year loan prime rate to 3.0% and the five-year LPR to 3.5%, each by 10 basis points, marking the first cuts since October.
• Major state-owned banks, including ICBC and Bank of China, reduced deposit rates by up to 25 basis points to protect profit margins and support lending rate cuts.
• These rate reductions are part of a broader stimulus strategy, which includes reserve requirement ratio cuts, to stabilize growth and counter deflationary pressures.
• The move follows a temporary 90-day tariff pause between Beijing and Washington, offering a brief respite in ongoing trade tensions.
• China's property market continues to struggle, with home prices declining in 67 out of 70 cities in April, reflecting persistent structural challenges.