China sets new 1-year loan prime rate at 4.25%

Chin has set the new (reformed) 1-year loan prime rate (LPR) at 4.25% – slightly lower than 4.31% seen under previous calculation. 

Most banks were expecting a drop of 10 to 25 basis points, according to zerohedge.

The People's Bank of China on Saturday announced a market based interest-rate mechanism to reduce financing costs for businesses struggling due to an economic slowdown.

• China introduces market driven lending rate to boost cheap funding for businesses