China Cuts Lending Rate in Attempt To Boost Economy
1 hr 28 min ago
China cut its benchmark lending rate Monday, in a move aimed at boosting an economy suffering a sharp slowdown caused by a prolonged real estate slump, tepid consumer spending, and trade tensions.
The People’s Bank of China cut a short-term policy rate, and Chinese banks followed by cutting their benchmark lending rate for mortgages, the five-year loan prime rate, by 10 basis points, as well as the rate for most other loans—the one-year loan prime rate—by the same amount. The cuts came as a surprise, according to Bloomberg.
China’s central bank is the latest to cut its interest rates in the global fight against inflation. Last month, the Bank of Canada was the first to cut rates followed by the European Central Bank.
Unlike its Chinese counterpart, the Federal Reserve is expected to hold its interest rate steady in its meeting next week.
Read more about China’s central bank policy here.
-Nisha Gopalan
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