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# People's Bank of China Cuts LPR Rates and Reverse Repo Rate to Bolster Economy
- URL: https://www.theglobalbanker.com/peoples-bank-china-cuts-lpr-reverse-repo-rate-2024/
- Published: 2024-07-22T16:40:00.000Z
- Updated: 2026-10-02T12:57:55.000Z
- Description: The PBoC cut its 1-year LPR to 3.35%, its 5-year LPR to 3.85%, and its 7-day reverse repo rate to 1.7% on 22 July 2024 to support economic growth.
- Author: TGB Editorial Team
- Tags: Central Banks, Asia-Pacific, #archive

The People's Bank of China eased monetary conditions on 22 July 2024, cutting its one-year loan prime rate to 3.35% and its five-year loan prime rate to 3.85%, whilst simultaneously reducing the seven-day reverse repo rate to 1.70%. The moves were aimed at supporting economic activity across the world's second-largest economy.

The five-year LPR serves as the reference rate for the majority of Chinese residential mortgages.

#### REVERSE REPO RATE

The reduction in the seven-day reverse repo rate to 1.70% acts on the short end of the money market curve, signalling the cost of short-term central bank liquidity and influencing interbank lending rates.

#### PBOC STATEMENT

The PBoC said the reverse repo cut was intended to strengthen counter-cyclical adjustment and better support the real economy.