Asian equities were mixed overnight as Mainland China outperformed and the US dollar strengthened.

The one-year loan prime rate (LPR) was cut from 3.35% to 3.1%, while the five-year LPR was lowered from 3.85% to 3.6%, the People’s Bank of China (PBoC) said in a statement. Most new and outstanding loans in China are based on the one-year LPR, while the five-year rate influences the pricing of mortgages.

China Reduces Loan Prime Rate to Support Economic Growth The Peoples Bank of China (PBOC) announced a cut to its loan prime rate (LPR) on Monday, implementing its latest strategy to boost economic growth.

China’s commercial lenders cut their benchmark lending rates in a highly anticipated move as policymakers intensify efforts to boost the ailing economy.

China cut benchmark lending rates as anticipated at the monthly fixing on Monday, following reductions to other policy rates last month as part of a package of stimulus measures to revive the economy.

China's strategic bid to boost economic growth has led to a cut on benchmark lending rates. The People’s Bank of China announced on Monday that it would lower the rates by 25 basis points. The Chinese Central Bank governor signaled the policy changes during a forum in Beijing on Friday.