BEIJING — China’s central bank cut a benchmark lending rate on Monday for the first time since April 2020, during the height of the coronavirus pandemic in the country.

The People’s Bank of ChinaLower the one-year loan prime rate to 3.8%This is down from 3.85%. At 4.65%, the prime rate for five-year loans remained stable from last month.

According to Wind Information data, the last time that the central bank reduced the LPR for one-year or five years was April 2020.

LPR has an impact on lending rates for household and corporate loans. The central bank last week announced that the LPR was being applied to lending rates for household and corporate loans. cut to the amount of cash banks need to have on reserve took effectIt was the second such action of this year.

China was the country that managed to avert the worst effects of the pandemic. However, this year’s growth, especially in July, has been slowing down due to a muted consumer market, Beijing’s zero tolerance policy for subsequent pandemics, and stricter regulations on the realty sector.

The Chinese top leadership stressed stability at the annual Central Economic Work Conference, which was held earlier in the month by the Chinese government.

State media reported that the meeting ended in the conclusion that prudent monetary policy should be flexible, appropriate, and that liquidity should remain at a reasonable level.