FOREX TradingCharts.com

Financial News: China Cuts Short Term Lending Rate For First

China Cuts Short Term Lending Rate For First Time Since 2015

11/18/2019 - 05:06:00 (RTTNews)

(RTTNews) - China's central bank unexpectedly cut its short-term lending rate on Monday, which was the first reduction in over four years, in a bid to boost slowing growth. The People's Bank of China lowered the seven-day repurchase rate to 2.50 percent from 2.55 percent. That was the first cut since October 2015.

Earlier this month, the bank had cut its medium term lending rate for the first time since 2016 as the economy grew at the slowest pace in nearly three decades.

The one year medium-term lending facility rate was lowered by five basis points to 3.25 percent from 3.30 percent.

Capital Economics expects further cuts in the coming months that shall pave the way for lower interbank rates and prompt banks to cut lending rates. "We anticipate another 70 basis points of cuts to the 7-day reverse repo rate by the middle of next year," Capital Economics Senior China Economist Julian Evans-Pritchard said.

"The PBOC will focus more on the downbeat signals from easing core consumer price inflation and deepening factory-gate deflation, as well as broader evidence of economic weakness," the economist added.

The economy grew only 6 percent in the third quarter, the weakest since 1992. The prolonged trade disputes with the United States have weighed heavily on foreign demand and investment.

The International Monetary Fund forecast China's growth to slow to 6.1 percent this year and to 5.8 percent next year.

In October, the bank left its benchmark, one-year loan prime rate, unchanged at 4.20 percent and the five-year lending rate at 4.85 percent. This new lending rate replaced PBoC's traditional benchmark lending rate in August. Capital Economics expects a five basis points reduction in the LPR, when the latest is published this Wednesday. The firm also expect the central bank to take further steps ahead to boost lending amid sluggish growth.

Separately, official data showed on Monday that the foreign direct investment, or FDI, into China grew 7.4 percent year-on-year in October to CNY 69.2 billion. In the January to October period, the FDI inflow rose 2.9 percent from a year ago.

For comments and feedback: contact editorial@rttnews.com

Copyright(c) 2019 RTTNews.com. All Rights Reserved

Market News provided by RTTNews

RECENT INTERNATIONAL FINANCIAL NEWS


Australia Lowers Budget Surplus Forecast (38 min(s), 40 sec(s) ago)
(RTTNews) - Australia's government downgraded its budget surplus forecast for the current year ...Full Story»

Japan Tertiary Activity Falls In October (58 min(s), 40 sec(s) ago)
(RTTNews) - Japan's tertiary industry activity declined at a faster-than-expected rate in Octo ...Full Story»

UK House Prices To Rise 2% In 2020: Rightmove (10 min(s), 20 sec(s) ago)
(RTTNews) - UK house prices are forecast to climb 2 percent next year with strong performance in n ...Full Story»

European Economics Preview: Eurozone Flash PMI Data Due (44 min(s), 20 sec(s) ago)
(RTTNews) - Flash Purchasing managers' survey data from euro area is due on Monday, headlining ...Full Story»

China Industrial Production, Retail Sales Growth Tops Expectations (21 min(s), 20 sec(s) ago)
(RTTNews) - China industrial production and retail sales expanded at the fastest pace in five mont ...Full Story»

China Industrial Production Jumps 6.2% On Year (52 min(s), 20 sec(s) ago)
(RTTNews) - Industrial production in China was up 6.2 percent on year in November, the National Bu ...Full Story»

Japan Manufacturing PMI Slips To 48.8 - Nikkei (22 min(s), 20 sec(s) ago)
(RTTNews) - The manufacturing sector in Japan continued to contract in December, and at a slightly ...Full Story»

China Data On Tap For Monday (07 min(s), 20 sec(s) ago)
(RTTNews) - China will release a raft of data on Monday, setting the pace for a busy day in Asia-P ...Full Story»

Search

INTERNATIONAL FINANCIAL NEWS

Australia Lowers Budget Surplus Forecast

12/16/2019 - 01:45 AM (RTTNews)
(RTTNews) - Australia's government downgraded its budget surplus forecast for the current year ...Full Story>>

Japan Tertiary Activity Falls In October

12/16/2019 - 01:25 AM (RTTNews)
(RTTNews) - Japan's tertiary industry activity declined at a faster-than-expected rate in Octo ...Full Story>>

UK House Prices To Rise 2% In 2020: Rightmove

12/15/2019 - 23:34 PM (RTTNews)
(RTTNews) - UK house prices are forecast to climb 2 percent next year with strong performance in n ...Full Story>>

European Economics Preview: Eurozone Flash PMI Data Due

12/15/2019 - 23:08 PM (RTTNews)
(RTTNews) - Flash Purchasing managers' survey data from euro area is due on Monday, headlining ...Full Story>>

China Industrial Production, Retail Sales Growth Tops Expectations

12/15/2019 - 22:45 PM (RTTNews)
(RTTNews) - China industrial production and retail sales expanded at the fastest pace in five mont ...Full Story>>
Copyright © 2019. All market data is provided by Barchart Solutions. Information is provided "as is" and solely for informational purposes, not for trading purposes or advice. To see all exchange delays and terms of use, please see disclaimer.