China cut its one-year benchmark lending rate on Monday, as expected, as authorities seek to ramp up efforts to stimulate credit demand, but surprised markets by keeping the five-year rate unchanged.
The recovery in the world's second-largest economy has faltered due to a worsening property slump, weak consumer spending and tumbling credit growth, which warranted further policy stimulus.
China's central bank has also pledged to keep liquidity reasonably ample and its policy "precise and forceful" to support the economic recovery, amid rising headwinds, according to its second-quarter monetary policy implementationBut the steady five-year tenor caught many traders and analysts off the guard, with some expecting the troubled property sector and rising default risks at some developers would have led to deeper cuts to the benchmarks.
"It flagged a problem on the effectiveness of PBOC's policy guidance pass-through into the market, and the Chinese authorities may be lacking effective tools to stimulate the property sector and economy via monetary easing."
Österreich Neuesten Nachrichten, Österreich Schlagzeilen
Similar News:Sie können auch ähnliche Nachrichten wie diese lesen, die wir aus anderen Nachrichtenquellen gesammelt haben.
Taiwan details China drills, VP says election not China's to callTaiwan's election next year is a choice between democracy and autocracy, Vice President William Lai said in comments broadcast after China carried out military drills around the island in anger at his visit this month to the United States.
Weiterlesen »
PBOC cuts one-year Loan Prime Rates to 3.45% but keeps five-year LPRs unchangedOn Monday, China's central bank, the People’s Bank of China (PBOC), lowered the one-year Loan Prime Rate (LPR) to 3.45% from 3.55% previous as expecte
Weiterlesen »
Cyber Monday: How to spot scams, shady marketing and actually good dealsShoppers should always double check the retailer's website or risk falling victim to fake sellers, cybersecurity expert Tony Anscombe said.
Weiterlesen »
SDSU to transition to virtual classes Monday, citing storm safety concernsThe university says it plans to return to normal in-person instruction and on- campus work on Tuesday.
Weiterlesen »
Seattle air quality alert will continue until MondayHow to avoid the wildfire smoke in Seattle.
Weiterlesen »