China's central bank has cut its five-year loan prime rate while leaving its one-year rate unchanged. It was the first time the five-year rate, which is a benchmark for mortgage rates, was cut since May. The five year rate was lowered by 0.25 basis points to 3.95% while the one-year rate remains at 3.45%. There was scant immediate reaction in markets to the decision, with the Shanghai Composite index remaining nearly unchanged by midday Tuesday. As markets reopened after a weeklong Lunar New Year holiday break, state-owned banks announced a flurry of plans for billions of dollars worth of loans to support developers struggling after a crackdown on excessive borrowing.
