China, Reserve Requirement Ratio, İnterest Rates, Loan Prime Rate, Economy, Us Fed, China Cuts New Loan Rate For Second Month But Struggling Economy Likely Needs More | Abs-Cbn News

China, Reserve Requirement Ratio

China cuts new loan rate for second month but struggling economy likely needs more

20.9.2019

China cuts new loan rate for second month but struggling economy likely needs more

Many China watchers believe more forceful measures will be needed soon to avoid a sharper slowdown and get the economy back on an even keel.

The five-year benchmark rate, which is likely to be used for mortgages, was left unchanged at 4.85 percent.

While small, the latest cut signals to markets that policymakers remain open to further easing, some analysts said.

In long-awaited interest rate reforms, the PBOC designated the LPR as its benchmark for new loans last month to guide borrowing costs lower, though the previous benchmark lending rate will still apply to older loans for a while longer.

"The LPR is based on banks’ quotations. If there is no government intervention, it’s hard to believe banks are willing to lower their quotations, because corporate demand for loans is not weak at all," said Luo Yunfeng, an analyst at Merchants Securities in Beijing, noting that lower rates also mean smaller profit margins.

A more effective way to reduce borrowing costs would be for the PBOC to directly cut MLF rates, said Tang Jianwei, analyst at Bank of Communications (BoComm), saying "more loosening is highly necessary because the economy is sluggish."

"That will help stabilize market expectations, investment, consumption and will not put pressure on the exchange rate."

Read more: ABS-CBN News

China ‘highly appreciates’ Kiribati cutting ties with Taiwan China on Friday praised the Pacific island of Kiribati for cutting ties with Taiwan, the second diplomatic defection from Taipei to Beijing in less than a week. | AFP

Malacañang against raising Hague ruling before UN for fear of hurting China tiesFollowing ex-DFA chief Albert del Rosario's suggestion will only have an 'adverse effect' on the Philippines' and China 's 'friendly talks' on the West Philippine Sea, says the Palace.

Russia, China fail to get enough votes for rival UN demand for Syria truce

Taiwan cuts ties with Kiribati amid China tension

PH won’t elevate WPS dispute with China to UN; opts for peaceful dialogueThe Philippine government is inclined to continue the peaceful dialogue with China to resolve the West Philippine Sea dispute rather than elevate the country’s 2016 arbitral win before the United Nations.

PH will lose if it elevates dispute with China to UN – LocsinForeign Affairs Secretary Teodoro Locsin Jr.said on Thursday said that Philippines stands to lose if it decides to raise Manila’s arbitral win against China before the United Nations (UN) because the world body is dominated by countries that are grateful to China .

Write Comment

Thank you for your comment.
Please try again later.

Latest News

News

20 September 2019, Friday News

Previous news

340 kilo ng pork skin na ibiniyahe sa Laoag kinumpiska

Next news

Cebu’s Team Adroit proud, pressured to represent PH in Dota 2 SEA Games event