SHANGHAI/BEIJING - China’s central bank pushed out long-awaited interest rate reforms on Saturday by establishing a reference rate for new loans issued by banks to help steer corporate borrowing costs lower and support a slowing economy.
However, the LPR’s moves since its launch have generally not reflected those market dynamics with lenders typically reluctant to cut into their profit margins with lower rates and was little-watched by the markets. The one-year rate, for example, is currently just below the benchmark one-year lending rate of 4.35%.
In addition to the existing one-year LPR, the central bank will also use contributing bank quotations to publish similar reference rates for benchmarks of five-years and beyond. Banks will retain discretion as to how they price rates for loans maturities of less than 1-year and within 1-5 years. Beijing has vowed to lower average funding costs for small companies by 1 percentage point this year to spur growth in the economy, amid weak demand domestically and a year-long trade war with the United States.The latest move is widely interpreted by the market as an official attempt to revive growth and effectively cut financing costs in the real economy.
“In our view, the PBOC will likely have to walk a tightrope between lowering borrowing costs and maintaining financial stability,” Lu added.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
China condemns US lawmakers' support for Hong Kong protestsSpokesman called U.S. support 'gross interference in China's internal affairs.' Hong Kong belongs to China. All the chaos in America we need to help ourselves first so I ain't mad at cha.
Source: ABC - 🏆 471. / 51 Read more »
A Case That Could Bring #MeToo To ChinaRichard Liu, JD .com’s billionaire founder and a major celebrity in China, may soon face a rape accusation (which he denies) in a U.S. court. It’s already been hotly debated on Chinese social media for months by rachsandl rachsandl I'm pretty certain he's not good for this please send out he's our people over there they maybe got his ass on the fact he's rich bitches this is a no go folks KBZ mikebaibears rachsandl 不是结案了吗？怎么又被回锅了？ I_AmCrypto_King rachsandl It’s a trendy business to wipe off billionaires with rapes and different other accusations I’ve noticed 😂 I see future billionaires disappear in the near future lol 😂, unless it’s extremely violent or have solid undeniable evidence ofcourse
Source: Forbes - 🏆 394. / 53 Read more »
A Case That Could Bring #MeToo To ChinaRichard Liu, JD.com’s billionaire founder and a major celebrity in China, may soon face a rape accusation (which he denies) in a U.S. court. It’s already been hotly debated on Chinese social media for months. rachsandl Yeah right. China does whatever the fuck China wants.
Source: Forbes - 🏆 394. / 53 Read more »
Small business confidence drops to a low as U.S.–China trade war rattles Main StreetSmall business owners across the nation are worried about the U.S.–China trade war. The CNBC|SurveyMonkey Small Business Survey for the third quarter finds confidence dropping to a level it has not seen since 2017, matching an all-time low. MakeIt Oh man. Well we should just keep losing hundreds of billions a year to China then.... MakeIt Still not the consumer LOL MakeIt 2007 50% no effect. 2019 49% no effect. so no effect. BTW, buy from elsewhere other than funding the superpower dictatorship in human history!
Source: CNBC - 🏆 12. / 72 Read more »
Japan's exports down for eighth month, sales to China slump as recession fears growJapan's exports slipped for an eighth month in July, while manufacturers&0... Seriously. The recession is here.
Source: Reuters - 🏆 2. / 97 Read more »