(Yicai) Oct. 18 -- China's central bank is likely this month to cut the loan prime rates, the lending rates to which mortgages, corporate loans, and fixed-asset investments are anchored, its governor said, after major commercial banks lowered their deposit rates.

The PBOC may cut the LPRs by 20 to 25 basis points on Oct. 21, Pan Gongsheng said earlier today during the opening ceremony of the 2024 Financial Street Forum Annual Conference in Beijing.

The bank last reduced the LPRs in July, lowering the one-year and five-year rates by 10 bps to 3.35 percent and 3.85 percent, respectively.

The LPRs are announced around the 20th of each month and are based on the average rates quoted by 20 major commercial banks to the National Interbank Funding Center.

Earlier today, the big six state-owned commercial banks cut their deposit rates for the second time since the end of July, creating room for lenders to adjust their quotes to the NIFC.

Editor: Martin Kadiev