The People’s Bank of China (PBOC, the country’s central bank) unexpectedly cut its 5-year benchmark lending rate (LPR) by 15 basis points to 4.45% from 4.6%. The rate cut was the maximum since the rate reform in 2019.

The one-year lending rate was left at 3.7%, the NBK said in a statement. It was cut by 5 basis points last December, another 10 bps in January and then remained unchanged.

Experts did not expect a rate cut, as earlier this week the Chinese central bank did not change the lending rate under the medium-term lending program (MLF), which is the benchmark for LPR, The Wall Street Journal notes.

The LPR became the new benchmark in August 2019 following the Chinese central bank’s interest rate reforms. Starting in 2020, the NBK requires banks to focus specifically on the LPR when setting rates for new loans.