Latest UK News - Breaking News & Headlines

Chinese Banks Have Cut Interest Rates for the First Time in 20 Months

30,556

Chinese banks have cut interest rates for the first time in 20 months in an effort to stem the economic slowdown in the country.

 

The interest rate on one-year loans to companies will rise from 3.85 to 3.8 percent, according to a statement from the People’s Bank of China. This is the first interest rate cut since April 2020. The five-year interest rate – a reference for mortgages – remains at 4.65 percent.

The rate cut means that stronger companies will be able to borrow at slightly lower interest rates.

The interest rate cut is seen as a harbinger of more monetary support. After all, the Chinese economy is under tension. A faltering real estate market, spending less by families, and sporadic coronavirus outbreaks are weighing on the world’s second-largest economy.

Leave A Reply