(MENAFN– AzerNews) By Alimat Aliyeva
The People’s Bank of China has lowered the one-year loan prime rate (LPR) for top borrowers to 3.1% from 3.35%. For five-year loans, the rate is now 3.6%, down from 3.85%. This decrease, adjusted monthly, helps lower loan costs for consumers and businesses, stimulating the economy.
The LPR impacts repayment levels on both existing and new loans. In 2023, it was cut twice in June (3.55%) and August (3.45%), with a single reduction in July 2024 to 3.35%.
The five-year interest rate also affects mortgage costs. In 2023, it changed in June (down to 4.2%), February (to 3.95%), and July (to 3.85%).
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