emirates7 - China on Wednesday introduced a broad set of economic stimulus measures, including interest rate reductions, as it ramps up efforts to support growth in the face of rising trade tensions.
At a press conference, People's Bank of China (PBOC) Governor Pan Gongsheng announced a 10 basis point cut to the seven-day reverse repurchase rate, lowering it from 1.5% to 1.4%. This adjustment is expected to lead to a similar decrease in the loan prime rate, the country’s key lending benchmark.
The central bank also plans to reduce the reserve requirement ratio (RRR) by 50 basis points, effectively releasing 1 trillion yuan (approximately $138.6 billion) in liquidity into the financial system.
In a further step to ease borrowing costs, the PBOC will cut mortgage rates under the state-run housing provident fund by 25 basis points. The rate for five-year loans aimed at first-time homebuyers will from 2.85% to 2.6%, according to the governor.
At a press conference, People's Bank of China (PBOC) Governor Pan Gongsheng announced a 10 basis point cut to the seven-day reverse repurchase rate, lowering it from 1.5% to 1.4%. This adjustment is expected to lead to a similar decrease in the loan prime rate, the country’s key lending benchmark.
The central bank also plans to reduce the reserve requirement ratio (RRR) by 50 basis points, effectively releasing 1 trillion yuan (approximately $138.6 billion) in liquidity into the financial system.
In a further step to ease borrowing costs, the PBOC will cut mortgage rates under the state-run housing provident fund by 25 basis points. The rate for five-year loans aimed at first-time homebuyers will from 2.85% to 2.6%, according to the governor.