China’s central bank cuts key lending rates, including one for the first time in
China’s central bank cut its benchmark lending rates again on Thursday amid concerns about an economic slowdown in the world’s second-largest economy. The People’s Bank of China reduced the one-year loan prime rate by 10 basis points from 3.8% to 3.7%. In December, the PBOC cut the one-year loan prime rate for the first time since April 2020.The five-year loan prime rate was lowered by 5 basis points from 4.65% to 4.6% — it was the first cut since April 2020, at the height of the coronavirus pandemic in the country.
Loan prime rates (LPR) affect the lending rates for corporate and household loans in the country.Most new and outstanding loans in China are based on the one-year LPR, but the five-year rate influences the pricing of home mortgages, according to Reuters. A snap poll by Reuters had showed that most participants expected China to slash both the lending rates on Thursday. The rate cuts continue the PBOC’s efforts to push down borrowing costs,
Though China was the first major economy to shake off most of its pandemic-driven economic shock, concerns grew last year around the sustainability of growth. They came as a result of muted consumer spending, tighter regulations, a struggling property sector as well as Beijing’s zero-tolerance Covid policy. On Monday, the central bank defied market expectations and lowered borrowing costs of medium-term loans for the first time since April 2020.
If you wish to leverage on this consider using DLCs,
$CM BANK(03968.HK$
5x short $CMB 5xShortSG231019(DSGW.SG$
5x long $CMB 5xLongSG231019(DTDW.SG$
If you wish to leverage on this consider using DLCs,
$CM BANK(03968.HK$
5x short $CMB 5xShortSG231019(DSGW.SG$
5x long $CMB 5xLongSG231019(DTDW.SG$
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
Read more
Comment
Sign in to post a comment
