Particle.news
Download on the App Store
6 ARTICLES
·
4w ago

China Cuts Key Lending Rates to Bolster Economic Growth

The People's Bank of China trims benchmark rates for the first time in seven months, unveiling a stimulus package to combat deflation and support its 5% growth target.

Headquarters of the People's Bank of China (PBOC), the central bank, is pictured in Beijing, China September 28, 2018. REUTERS/Jason Lee/File Photo
Image
Image
Image

Overview

  • The PBOC reduced the 1-year loan prime rate to 3.0% and the 5-year LPR to 3.5%, marking the first cuts since October 2024.
  • State banks also lowered deposit rates by up to 25 basis points, aiming to safeguard margins while enabling lending rate reductions.
  • The stimulus package includes lower reserve requirements and reduced mortgage rates under the housing provident fund.
  • A 90-day tariff rollback between the U.S. and China has eased trade tensions, stabilizing the yuan at 7.2178 against the U.S. dollar.
  • Despite modestly upgraded growth forecasts, deflation risks persist, with wholesale and consumer prices continuing to decline.