The Central Bank announced in a statement reducing the rate Interest On medium-term loans to financial institutions from 2.3 percent to 2 percent, the lowest level ever. The last cut dates back to July.
The reduction was accompanied by an injection of 300 billion yuan (38 billion euros) into the economy, according to the central bank, at a time when the country is short of liquidity.
This support was positively reflected on the Chinese stock exchanges on Wednesday morning.
“The interest rate cut in China It is no longer sufficient to stimulate growth.”
“Beijing needs a more robust recovery plan,” he said, as the country is particularly struggling with a real estate crisis and rising inflation. Unemployment Among young people and slowing household consumption, the risk of recession looms.
More than a year and a half after the lifting of health restrictions imposed by the authorities to combat the Covid pandemic, which had disastrous repercussions on the country’s economy, the pace of economic recovery is still slower than expected.
And on Tuesday, he announced Central Bank of China Unprecedented measures since the lifting of Covid-related restrictions to support consumption and real estate, in the hope of stimulating activity that is going through a difficult phase.
The sector suffers from Housing And construction since 2020 has imposed strict conditions on developers by Beijing. Real Estate To obtain loans, which has pushed some, such as Evergrande or Country Garden, to the brink of bankruptcy, while low prices prevent the Chinese from investing in the sector.
The Chinese authorities are seeking to achieve GDP growth of about 5 percent in 2024, a goal that many economists consider very difficult to achieve due to current challenges.
China is due to release third-quarter growth figures in mid-October.
