China cuts five-year reference interest rate by 0.25 percentage points

The People's Bank of China announced on Tuesday that the five-year benchmark loan rate (LPR 5), which affects the borrowing costs of households and businesses, will be cut from 4.2 percent to 3.95 percent. The 0.25 percentage point cut was the largest cut in the policy rate since it was introduced in 2019 and exceeded analysts' expectations of a 0.1 percentage point cut.

Gigasun's loan with JS leasing is tied to LPR 5 and the interest rate reduction means an annual reduction in interest expenses of approximately SEK 2.6 million starting next year.