And he decided People’s Bank of China (Central Bank) reduced the rate Interest The principal rate for one-year loans rose to 3.1 percent from the previous reading of 3.35 percent.
The prime interest rate for loans of more than five years, which many lenders base their mortgage rates on, was cut to 3.6 percent from 3.85 percent, according to the National Center for Interbank Finance.
Lending rates were last cut in July.
People’s Bank of China Governor Pan Gongsheng said at a financial forum last week Lending rates It will fall by 20 to 25 basis points on October 21.
The People’s Bank of China announced rate cuts Mandatory reserves for banks by 50 basis points and the benchmark seven-day reverse repo rate by 20 basis points on September 24, triggering the strongest stimulus since the pandemic that includes measures to support the sector. Real estate faltering and enhancing consumption.
The Chinese authorities have sharply increased stimulus measures since late September, with the CSI300 index surpassing records for average daily movements and rising by more than 14 percent overall. The yuan also fell by 1 percent against the dollar during that period.
But markets are awaiting more details about the size of the stimulus package and a clearer roadmap to restore the economy’s long-term sustainability.
register China’s economy In the third quarter, the slowest pace of growth since early 2023, and although consumption and industrial production data came better than expected last month, the faltering real estate sector still poses a major challenge for Beijing, which is striving to revive growth.
Official data showed that the world’s second-largest economy grew by 4.6 percent in the period from July to September, slightly exceeding analysts’ expectations in a Reuters poll of 4.5 percent growth, but growth was slowing from a pace of 4.7 percent in the second quarter.
After the release of the GDP data in a press conference, officials expressed their confidence in the economy’s ability to achieve the government’s growth target for the full year, which is about five percent, through more supportive policies and another reduction in the reserves that banks can hold.
A Reuters poll showed that gross domestic product is likely to grow by 4.8 percent in the full year, which is below the government’s target, and that growth will slow to 4.5 percent in 2025.
