China cut benchmark lending rates for the first time since October on Tuesday, while major state banks lowered deposit rates as authorities work to ease monetary policy to help buffer the economy from the impact of the Sino-U.S. trade war.
The widely expected rate cuts are aimed at stimulating consumption and loan growth as the world's No. 2 economy softens, while still protecting commercial lenders' shrinking profit margins.
Still, the size of the rate reductions was mild and reflected the incremental pace of monetary easing in recent years and what analysts interpreted as some wariness among policymakers for more aggressive steps while they navigate the trade war with the United States.
The People's Bank of China said the one-year loan prime rate (LPR), a benchmark determined by banks, had been lowered by 10 basis points to 3.0% , while the five-year LPR was reduced by the same margin to 3.5%.
Most new and outstanding loans in China are based on the one-year LPR, while the five-year rate influences the pricing of mortgages. Both rates are now at the lowest level since China ravamped the LPR mechanism in 2019.
The lending rate cut was announced just after five of China's biggest state-owned banks said they had trimmed their deposit interest rates.
Industrial and Commercial Bank of China (601398.SS), opens new tab, Agricultural Bank of China (601288.SS), China Construction Bank (601939.SS), and Bank of China (601988.SS) reduced deposit rates by 5-25 basis points (bps) for some tenors, according to rates shown on the banks' mobile apps. Reuters had reported on Monday that the banks planned to cut their deposit rates from Tuesday.
The deposit rate reductions should guide smaller lenders in making similar cuts.
Banking shares edged higher following the rate decision, with the CSI Bank Index (.CSI399986) rising 0.3%.
Marco Sun, chief financial market analyst at MUFG Bank (China), said the rate cuts were aimed at boosting credit lending and stimulating consumption.
Russia pledged support for Cuba on Thursday after the U.S. indicted former Cuban president Raúl Castro on murder charges linked to the 1996 ...
The European Union has moved closer to finalising a trade agreement with the United States in an effort to avoid a...
Russia delivered nuclear munitions to field storage facilities in Belarus as part of major nuclear drills, the Russia...
Russia and China plan to unveil a nearly one-kilometre cable car over the Amur river by the end of the year, the TASS state news agency reported on...
Chinese President Xi Jinping may visit North Korea as early as next week, South Korea's Yonhap news agency ...
Russia and China plan to unveil a nearly one-kilometre cable car over the Amur river by the end of the year, the TASS state news agency reported on Thursday (21 May).
Chinese President Xi Jinping may visit North Korea as early as next week, South Korea's Yonhap news agency reported late on Wednesday (21 May) quoting a senior government official.
Chinese President Xi Jinping and Russian President Vladimir Putin met in Beijing on Wednesday, showing close political alignment even though key economic deals were not finalised.
Chinese President Xi Jinping and Russian President Vladimir Putin praised bilateral ties during talks in Beijing on Wednesday, before Putin departed China later in the day.
Asian stocks surged on Thursday as some vessels resumed passage through the Strait of Hormuz, while forecast-beating results at Nvidia and a suspended workers' strike at Samsung Electronics lifted shares of chipmakers.
United Nations World Urban Forum 13 continues in Baku, Azerbaijan on 19 May with sessions and roundtable discussions focused on strengthening dialogue and advancing cooperation in urban development. Organisers say there are nearly 3 billion people globally who face some form of housing inadequacy.
Day four of the World Urban Forum (WUF) in Baku brings a packed agenda on sustainable cities and the global housing crisis, with sessions on green housing, smart cities, public spaces and urban rights taking place on Wednesday (20 May) at Baku Olympic Stadium in Azerbaijan.
At least 21 people have been killed and thousands evacuated after torrential rain triggered flooding, landslides and transport disruption across southern and central China, with authorities warning that more heavy rainfall is expected along the Yangtze River.
Russia’s ambassador to the United Nations Vasily Nebenzya warned on Tuesday (19 May) that Moscow could retaliate against Baltic states if Ukraine launches military drones from that region. Latvia, the United States and Ukraine responded strongly during a UN Security Council meeting.
A government-mediated agreement has suspended an 18-day walkout by about 48,000 Samsung union members, easing fears of damage to South Korea's economy and global chip supply.
Asian stocks surged on Thursday as some vessels resumed passage through the Strait of Hormuz, while forecast-beating results at Nvidia and a suspended workers' strike at Samsung Electronics lifted shares of chipmakers.
Elon Musk’s SpaceX will have to improve its reliability before receiving approval for its target 10,000 launches annually within five years, Bryan Bedford, Head of the U.S. civil aviation agency, the Federal Aviation Administration (FAA), has said.
Demand for electric vehicles has surged across Europe as elevated fuel prices linked to the Iran conflict push consumers toward new and second-hand EVs, according to data shared with Reuters. It is providing a boost to an auto industry that has struggled with slower-than-expected adoption.
South Korea’s Samsung Electronics is facing its largest potential labour action in years, with tens of thousands of workers preparing for a prolonged strike over bonuses and profit-sharing at a time when the company is benefiting from a global artificial intelligence (AI) driven chip boom.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment