Expert: China has made a necessary cut to benchmark lending rate

China has cut its benchmark lending rate, with the one-year loan prime rate (LPR) down by 10 basis points to 3.7 percent, and the five-year LPR lowered by five basis points to 4.6 percent. The five-year LPR influences the pricing of mortgages, and was cut for the first time since April 2020. Qu Qiang, assistant director of the International Monetary Institute at Renmin University, believed the cut was a necessary adjustment. 

On Thursday, Qu told CGTN's Global Business show that unlike Western countries, which resorted to monetary easing or ultra-loose policies from the beginning of the pandemic, China held up its steps and kept monetary policies relatively prudent the whole time to fit its own conditions.

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