China unexpectedly leaves benchmark lending rates unchanged after Fed’s jumbo cut

[Pelican Press 0]

This is the hidden content, please

• Sign In
• or
• Sign Up

China unexpectedly leaves benchmark lending rates unchanged after Fed’s jumbo cut

The central bank of the People’s Republic of China is responsible for formulating and implementing monetary policies, preventing and defusing financial risks and maintaining financial stability.

Peng Song | Moment | Getty Images

China on Friday kept its main benchmark lending rates unchanged

This is the hidden content, please

• Sign In
• or
• Sign Up

.

This is the hidden content, please

• Sign In
• or
• Sign Up

a trim as the Federal Reserve’s 50 basis point rate cut had given more room for China to lower its domestic borrowing costs without prompting a sharp decline in yuan. 

The People’s Bank of China (PBOC) said it would keep the one-year loan prime rate (LPR) at 3.35%, as well as the five-year LPR at 3.85%. 

The one-year LPR applies to most new and outstanding loans in China, while the five-year rate influences the pricing of mortgages. 

The rate cut stateside had allowed more monetary flexibility for China to focus on easing the debt burden on its consumers and businesses as it seeks to bolster investment and spending. 

China surprised the markets by shaving major short and long term lending rates in July, in a move to reflate growth in its economy, which was facing a prolonged property crisis and weakened consumer and business sentiment. 

In August, China’s retail sales, industrial production and urban investment all grew slower than expected, missing expectations among economists polled by Reuters. Urban jobless rate rose to a six-month high, while year-on-year home prices fell at their fastest pace in nine years. 

The disappointing economic data underscored lackluster momentum in the economy, and renewed calls for the government to roll out more fiscal and monetary stimulus measures. 

A few big banks dialed back their forecast for China’s full-year GDP growth to below the government’s official target of 5%. Bank of America lowered their forecast for China’s 2024 GDP growth to 4.8%, and Citigroup trimmed their projection to 4.7%. 

Reuters contributed to this report.

This is the hidden content, please

• Sign In
• or
• Sign Up

#China #unexpectedly #leaves #benchmark #lending #rates #unchanged #Feds #jumbo #cut

This is the hidden content, please

• Sign In
• or
• Sign Up

This is the hidden content, please

• Sign In
• or
• Sign Up