China Cuts Interest Rates to Boost Economy
By Rediff Money Desk, Bangkok Jul 22, 2024 09:57
China's central bank has cut interest rates to revive the property sector and stimulate economic growth, aiming to counter a slowdown.
![China Cuts Interest Rates to Boost Economy](https://im.rediff.com/money/2020/sep/10loan.jpg)
Illustration: Dominic Xavier/Rediff.com
Bangkok, Jul 22 (AP) China's central bank has cut both its five-year loan prime rate and its one-year rate, moving to revive its ailing property sector and rev up the slowing economy.
The five-year rate, which is a benchmark for mortgages, was cut by 10 basis points to 3.85% from 3.95%. The one-year rate was reduced to 3.35% from 3.45%.
The People's Bank of China also reduced collateral requirements for its medium-term lending facility for banks. It said that was intended to ease pressure on the bond market.
The world's second largest economy has struggled to regain momentum since the COVID-19 pandemic and a slump in the property market has been a major hindrance.
Economic growth fell to 4.7% in the last quarter, but remained at the government's target rate of about 5% for the first half of the year. (AP)
The five-year rate, which is a benchmark for mortgages, was cut by 10 basis points to 3.85% from 3.95%. The one-year rate was reduced to 3.35% from 3.45%.
The People's Bank of China also reduced collateral requirements for its medium-term lending facility for banks. It said that was intended to ease pressure on the bond market.
The world's second largest economy has struggled to regain momentum since the COVID-19 pandemic and a slump in the property market has been a major hindrance.
Economic growth fell to 4.7% in the last quarter, but remained at the government's target rate of about 5% for the first half of the year. (AP)
Source: ASSOCIATED PRESS
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