Chinese Borrowing Costs Set to Drop Again as PBOC Signals Easing

Officials promised Tuesday to avoid a collapse in credit growth and urged banks to actively look for good lending projects

(Bloomberg) — Chinese lenders are expected to lower borrowing costs for a second month Thursday after the central bank cut policy loan rates and pledged more easing to stabilize the economy.

The one-year and five-year loan prime rates (LPRs) are likely to be cut when announced by the People’s Bank of China (PBOC), several economists said. The LPRs, which are the de facto benchmark lending rates, are based on quotes that 18 banks offer their best customers and submit to the PBOC.