China lowers MLF interest rate to reduce financing costs
4 months, 4 weeks ago

China lowers MLF interest rate to reduce financing costs

China Daily  

File photo shows an exterior view of the People's Bank of China in Beijing, capital of China. BEIJING - China's central bank on Thursday lowered the medium-term lending facility interest rate to decrease the borrowing costs of the real economy. The People's Bank of China on Thursday also pumped 200 billion yuan into the market via the MLF, which will mature in one year at an interest rate of 2.3 percent, 20 basis points lower than the previous level. "Financial institutions have much more liquidity demand near the end of the month, adding to upward pressures on the interest rates of the monetary market," said Wen Bin, chief economist at China Minsheng Bank, in explaining the reason for the PBOC's additional MLF operation this month. Analysts said recent interest rate declines, especially those for corporate loans and mortgages, will help further reduce the burden on the real economy and stimulate effective demand.

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History of this topic

China's loan prime rates remain unchanged
4 days, 16 hours ago

China's loan prime rates remain unchanged

China Daily  

BEIJING -- China's one-year loan prime rate, a market-based benchmark lending rate, came in at 3.1 percent Friday, unchanged from the previous month. The over-five-year LPR, on which many lenders base their mortgage rates, also remained unchanged from the previous reading of 3.6 percent, according to the National Interbank Funding Center. Analysts believe the lower lending rate will help relieve …

China still has further room for RRR, interest rate cuts
2 weeks, 1 day ago

China still has further room for RRR, interest rate cuts

China Daily  

By Sheng Songcheng | China Daily | Updated: 2024-12-09 10:35 The People's Bank of China, the country's central bank, proposed in its third quarter monetary policy implementation report that a reasonable pickup in prices should be taken as a key consideration in monetary policymaking to keep prices at a reasonable level. And with the central bank maintaining its stance on …

China conducts 900-billion-yuan MLF operation to sustain banking liquidity
4 weeks, 1 day ago

China conducts 900-billion-yuan MLF operation to sustain banking liquidity

China Daily  

Xinhua | Updated: 2024-11-25 15:30 Headquarters of the People's Bank of China, the central bank, is pictured in Beijing. BEIJING - China's central bank on Monday conducted a 900-billion-yuan medium-term lending facility operation to maintain reasonable and ample liquidity in the country's banking system. The MLF operation features a one-year maturity period and an interest rate of 2 percent, unchanged …

China's Central Bank Cuts Key Interest Rates to Boost Economy
2 months ago

China's Central Bank Cuts Key Interest Rates to Boost Economy

The Hindu  

China's central bank has cut two key interest rates to boost the economy. The one-year Loan Prime Rate (LPR) and five-year LPR were cut from 3.35% to 3.1% and 3.85 to 3.6% respectively. These cuts are aimed at reviving spending and boosting economic growth. However, the economy has been struggling with weak consumption and a prolonged debt crisis in the …

Rate cuts set to boost market confidence
2 months, 4 weeks ago

Rate cuts set to boost market confidence

China Daily  

China's top financial regulators, in a move that went beyond market expectations, unveiled a potent combination of monetary easing measures on Tuesday, aimed at anchoring market confidence and underpinning economic recovery amid domestic and global headwinds, analysts said. Pan Gongsheng, governor of the People's Bank of China, the nation's central bank, said at a news conference on Tuesday that the …

PBOC hints at further cuts in the reserve requirement ratio
3 months, 2 weeks ago

PBOC hints at further cuts in the reserve requirement ratio

China Daily  

The financial district of Pudong New Area. China will intensify counter-cyclical monetary measures at the aggregate level, central bank officials said on Thursday, implying room for further reductions in the reserve requirement ratio. Zou Lan, head of the Monetary Policy Department of the People's Bank of China, the country's central bank, said that the current average RRR of financial institutions …

Big banks cut deposit rates to strengthen sector stability
4 months, 4 weeks ago

Big banks cut deposit rates to strengthen sector stability

China Daily  

This file photo shows a worker counting Chinese currency at a bank in Lianyungang, East China's Jiangsu province. Several major Chinese commercial banks cut deposit rates on Thursday, signaling a new round of deposit rate cuts that could pave the way for further reductions in policy benchmarks of lending rates to bolster economic growth, market analysts said. The LPR reduction …

China cuts 1-year benchmark rate and doubles subsidies for EVs in its ‘cash for clunkers’ program
4 months, 4 weeks ago

China cuts 1-year benchmark rate and doubles subsidies for EVs in its ‘cash for clunkers’ program

Associated Press  

BANGKOK — China ratcheted up its effort to reinvigorate its slowing economy Thursday by unexpectedly cutting a key policy rate and also doubling subsidies for electric vehicles bought to replace older cars. The People’s Bank of China said it cut its lending rate for one-year medium term policy loans by 20 basis points to 2.3%. Major state-run banks cut deposit …

China lowers MLF interest rate to reduce financing costs
4 months, 4 weeks ago

China lowers MLF interest rate to reduce financing costs

China Daily  

File photo shows an exterior view of the People's Bank of China in Beijing, capital of China. BEIJING - China's central bank on Thursday lowered the medium-term lending facility interest rate to decrease the borrowing costs of the real economy. The People's Bank of China on Thursday also pumped 200 billion yuan into the market via the MLF, which will …

China cuts to key rates to in a bid to support economy
5 months ago

China cuts to key rates to in a bid to support economy

The Hindu  

China surprised markets by lowering a key short-term policy rate and its benchmark lending rates on July 22, in an attempt to boost growth in the world's second-largest economy. The People's Bank of China said on July 22 it would cut the seven-day reverse repo rate to 1.7% from 1.8%, and would also improve the mechanism of open market operations. …

China cuts benchmark lending rate LPR
5 months ago

China cuts benchmark lending rate LPR

China Daily  

A pedestrian walks past the headquarters of the PBOC in Beijing. JIANG QIMING/CHINA NEWS SERVICE BEIJING -- China on Monday cut the market-based benchmark lending rate, in line with market expectations as authorities stepped up monetary support to shore up the economy. The one-year loan prime rate came in at 3.35 percent Monday, down from the previous reading of 3.45 …

Bond comments by China’s Xi hint at possible expansion of PBOC toolkit
8 months, 3 weeks ago

Bond comments by China’s Xi hint at possible expansion of PBOC toolkit

Live Mint  

A months-old speech by China’s top leader has stoked speculation around aggressive liquidity boosts from Beijing. While economists have generally shrugged off such a possibility, some say that more trading of treasury bonds could bring the country’s central bank more in line with practices adopted by peers in developed markets. Economists say U.S.-style “quantitative easing," in which a central bank …

China leaves benchmark lending rates unchanged, as expected
9 months ago

China leaves benchmark lending rates unchanged, as expected

Hindustan Times  

China left benchmark lending rates unchanged at a monthly fixing on Wednesday, in line with market expectations, after the central bank kept a key policy rate steady last week amid some signs of improvement in the broad economy. While China's factory output and retail sales beat expectations in the January-February period, property investment in China fell 9% year-on-year in the …

China's central bank adds liquidity via reverse repos, MLF
9 months, 1 week ago

China's central bank adds liquidity via reverse repos, MLF

China Daily  

Headquarters of the People's Bank of China, the central bank, is pictured in Beijing. BEIJING - China's central bank injected liquidity into the banking system through reverse repos and medium-term lending facility on Friday. The People's Bank of China conducted 13 billion yuan of seven-day reverse repos at an interest rate of 1.8 percent. The move is aimed at keeping …

Significant interest rate cuts, just what the market needs
10 months ago

Significant interest rate cuts, just what the market needs

China Daily  

This file photo shows a worker counting Chinese currency at a bank in Lianyungang, East China's Jiangsu province. China's central bank announced the largest cut to a benchmark mortgage rate in recent years on Tuesday, lowering the over-five-year loan prime rate by 25 basis points to 3.95 percent. In 2023, the central bank introduced a series of rate cuts, lowering …

China implements biggest LPR cut on record
10 months ago

China implements biggest LPR cut on record

China Daily  

By Zhou Lanxu| chinadaily.com.cn| Updated :2024-02-21 China implemented the biggest cut on record to a mortgage rate benchmark on Tuesday, indicating monetary policymakers' dedication to bolstering economic revival, with additional cuts to a key policy rate likely on the horizon, experts said. With Tuesday's cut underscoring policymakers' ramped-up efforts to address the housing market weakness and stabilize the broader economy, …

China cuts key interest rate in the latest move to boost its ailing property sector
10 months ago

China cuts key interest rate in the latest move to boost its ailing property sector

Associated Press  

BANGKOK — China’s central bank announced Tuesday that it cut its 5-year loan prime rate while leaving its 1-year rate unchanged in the latest move to ease pressures on the ailing property market. But coupled with efforts to provide increased credit support to developers, today’s cut should help to reduce pressure on the property sector somewhat,” Julian Evans-Pritchard of Capital …

China implements biggest LPR cut on record
10 months ago

China implements biggest LPR cut on record

China Daily  

China implemented the biggest cut on record to a mortgage rate benchmark on Tuesday, indicating monetary policymakers' dedication to bolstering economic revival, with additional cuts to a key policy rate likely on the horizon, experts said. With Tuesday's cut underscoring policymakers' ramped-up efforts to address the housing market weakness and stabilize the broader economy, experts said the PBOC may add …

LPR: China makes biggest-ever cut to key mortgage rate to support housing market
10 months ago

LPR: China makes biggest-ever cut to key mortgage rate to support housing market

CNN  

Editor’s Note: Sign up for CNN’s Meanwhile in China newsletter, which explores what you need to know about the country’s rise and how it impacts the world. Hong Kong CNN — China’s central bank has cut its key mortgage reference rate by a record amount, as it ramps up efforts to stem a prolonged property crisis. The People’s Bank of …

China eases banks' reserve requirement to cement economic recovery
10 months, 4 weeks ago

China eases banks' reserve requirement to cement economic recovery

China Daily  

A cashier counts renminbi notes in a bank in Haian, Jiangsu province. BEIJING - China's central bank will lower the amount of reserve requirement that financial institutions have to set aside, amid efforts to support economic recovery and confidence. Reserve requirement ratio for financial institutions will be cut by 0.5 percentage points from Feb 5, which will provide 1 trillion …

China’s central bank eyes reserve ratio cut to boost lending
11 months, 2 weeks ago

China’s central bank eyes reserve ratio cut to boost lending

Live Mint  

Chinese authorities have indicated a possible cut in the reserve ratio which is the amount of money banks must set aside as reserves to propel lending, a report said. In an interview with state-run Xinhua News Agency, Zou Lan, head of the People’s Bank of China’s monetary policy department said that the PBOC may use open market operations, medium-term lending …

New deposit rate cuts herald cheaper loans
1 year ago

New deposit rate cuts herald cheaper loans

China Daily  

A visitor walks past the booth of Bank of China during an expo in Beijing. CHEN JUNMIN/FOR CHINA DAILY Reductions most substantial since 2016; may incentivize consumption China's biggest banks cut interest rates on deposits on Friday, which analysts said may have marked the biggest cut since 2016 and will likely help create room for benchmark lending rates to decline …

China’s big banks cut deposit rates as growth plateaus
1 year ago

China’s big banks cut deposit rates as growth plateaus

Live Mint  

China’s biggest banks are lowering the deposit rates offered to savers, a move that could pave the way for the central bank to make interest-rate cuts to spur economic growth. “Lower deposit rates should help alleviate pressures on banks’ net interest margins and lay the groundwork for the PBOC to cut its policy lending rates in January, which have been …

PBOC cuts rates to boost growth
1 year, 6 months ago

PBOC cuts rates to boost growth

China Daily  

File photo shows an exterior view of the People's Bank of China in Beijing. Move comes amid stepped-up efforts to consolidate recovery, hike confidence China's central bank cut its short-term lending rate, the first such move since August 2022, as the country stepped up measures to consolidate economic recovery and restore market confidence amid downward pressure, analysts said on Tuesday. …

PBOC cuts rates to boost growth
1 year, 6 months ago

PBOC cuts rates to boost growth

China Daily  

Move comes amid stepped-up efforts to consolidate recovery, hike confidence China's central bank cut its short-term lending rate, the first such move since August 2022, as the country stepped up measures to consolidate economic recovery and restore market confidence amid downward pressure, analysts said on Tuesday. Thanks to Tuesday's policy interest rate cut, the country's key benchmark lending rates for …

专家解读央行超预期降息的考量
2 years, 4 months ago

专家解读央行超预期降息的考量

China Daily  

中国人民银行开展4000亿元中期借贷便利（MLF）操作，20亿元7天公开市场逆回购操作，中标利率均下降10个基点，分别是2.75%和2%。本次央行降息超出市场预期。央行发布二季度货币政策执行报告，强化了对“不搞大水漫灌”的关注。市场预期流动性仍将保持宽松。央行在当前时点降息10个基点，笔者理解主要有以下三个原因。 A clerk counts cash at a bank in Haian, East China's Jiangsu province, in July. The People's Bank of China, the country's central bank, recently lowered the rate on 400 billion yuan of one-year medium-term lending facility loans to some financial institutions by 10 basis points to 2.75 percent. Therefore, we may interpret the exchange rate to be "adhering …

专家解读央行超预期降息的考量
2 years, 4 months ago

专家解读央行超预期降息的考量

China Daily  

中国人民银行开展4000亿元中期借贷便利（MLF）操作，20亿元7天公开市场逆回购操作，中标利率均下降10个基点，分别是2.75%和2%。本次央行降息超出市场预期。央行发布二季度货币政策执行报告，强化了对“不搞大水漫灌”的关注。市场预期流动性仍将保持宽松。央行在当前时点降息10个基点，笔者理解主要有以下三个原因。 A clerk counts cash at a bank in Haian, East China's Jiangsu province, in July. The People's Bank of China, the country's central bank, recently lowered the rate on 400 billion yuan of one-year medium-term lending facility loans to some financial institutions by 10 basis points to 2.75 percent. Therefore, we may interpret the exchange rate to be "adhering …

央行超预期下调政策利率，稳增长措施再加码
2 years, 4 months ago

央行超预期下调政策利率，稳增长措施再加码

China Daily  

Headquarters of the People's Bank of China, the central bank, is pictured in Beijing, China. 8月15日，人民银行开展4000亿元中期借贷便利（MLF）操作，中标利率下调10个基点至2.75％，7天期逆回购利率同步下调10个基点至2％，为尚需稳固的国内经济注入金融强心剂。面对尚不稳固的经济恢复基础，宏观政策仍以稳增长为主线，择机加码调控，积极对冲经济下行压力。 China's central bank delivered surprise interest rate cuts on Monday, suggesting that the country is still willing to lend more monetary support on the aggregate front in the coming months despite a potential rise in structural inflationary pressure, experts said. 专家表示，中国人民银行8月15日超预期下调政策利率，表明尽管结构性通胀压力可能上升，但在未来几个月货币政策将继续从总量上发力。 Thanks to Monday's …

央行超预期下调政策利率，稳增长措施再加码
2 years, 4 months ago

央行超预期下调政策利率，稳增长措施再加码

China Daily  

Headquarters of the People's Bank of China, the central bank, is pictured in Beijing, China. 8月15日，人民银行开展4000亿元中期借贷便利（MLF）操作，中标利率下调10个基点至2.75％，7天期逆回购利率同步下调10个基点至2％，为尚需稳固的国内经济注入金融强心剂。面对尚不稳固的经济恢复基础，宏观政策仍以稳增长为主线，择机加码调控，积极对冲经济下行压力。 China's central bank delivered surprise interest rate cuts on Monday, suggesting that the country is still willing to lend more monetary support on the aggregate front in the coming months despite a potential rise in structural inflationary pressure, experts said. 专家表示，中国人民银行8月15日超预期下调政策利率，表明尽管结构性通胀压力可能上升，但在未来几个月货币政策将继续从总量上发力。 Thanks to Monday's …

China cuts interest rate to shore up sagging economy
2 years, 4 months ago

China cuts interest rate to shore up sagging economy

Associated Press  

BEIJING — China’s central bank trimmed a key interest rate Monday to shore up sagging economic growth at a politically sensitive time when President Xi Jinping is trying to extend his hold on power. The ruling party has effectively acknowledged it cannot hit this year’s official 5.5% growth target after anti-virus curbs disrupted trade, manufacturing and consumer spending. “More efforts …

China signals caution on inflation despite COVID, Ukraine woes
2 years, 8 months ago

China signals caution on inflation despite COVID, Ukraine woes

Al Jazeera  

The People’s Bank of China keeps one-year loan prime rate at 3.7 percent and the five-year rate at 4.6 percent. China held key interest rates for corporate and household loans steady on Wednesday, a surprise move that signals Beijing remains cautious about policy easing even as COVID-19 and the Ukraine war weigh on growth. The People’s Bank of China kept …

China cuts interest rates to fight economic impact of zero-Covid policy
3 years ago

China cuts interest rates to fight economic impact of zero-Covid policy

The Telegraph  

China’s central bank has cut interest rates in a bid to fight the economic impact of its "zero-Covid" policy. The People’s Bank of China cut the benchmark one-year loan prime rate to 3.8pc from 3.85pc, the first time it has reduced rates since April 2020 when the pandemic peaked in the country. Reducing interest rates may have the effect of …

China economy: LPR cut for the first time in 20 months
3 years ago

China economy: LPR cut for the first time in 20 months

CNN  

Hong Kong CNN Business — China’s central bank cutits main interest rate for the first time in 20 months, as authorities step up efforts to boost an economy that has been hit by pandemic-related curbs, a real estate slump and an unprecedented crackdown on private enterprises. “The cut reinforces our view that authorities are increasingly open to cutting interest rates …

China strengthens lending support for private enterprises
3 years ago

China strengthens lending support for private enterprises

China Daily  

BEIJING -- China has increased lending support for the private sector, with new loans to private enterprises reaching 5 trillion yuan in the first 10 months of 2021, according to China's top banking and insurance regulator. Outstanding loans to private enterprises by banking financial institutions stood at 53.1 trillion yuan as of September this year, 15 trillion yuan more than …

PBOC may have to juice China’s economy as ‘stagflation’ risk rises
3 years, 1 month ago

PBOC may have to juice China’s economy as ‘stagflation’ risk rises

CNN  

Hong Kong CNN Business — A Chinese central official has warned that stagflation could weigh on an already struggling economy next year. Liu Shijin, a member of the People’s Bank of China’s monetary policy committee, told an online forum on Sunday that the world’s second largest economy may have to deal with “quasi-stagflation” the rest of this year and into …

More credit urged for small biz
3 years, 5 months ago

More credit urged for small biz

China Daily  

The booth of China Minsheng Bank promotes lending to smaller businesses during an expo in Beijing. Central bank asks lenders to utilize special policy tools, shore up real economy China's central bank has urged banking financial institutions to increase credit supply to smaller businesses. The PBOC also called upon lenders to scale up inclusive financing services, and continually increase credit …

More credit urged for small biz
3 years, 5 months ago

More credit urged for small biz

China Daily  

The booth of China Minsheng Bank promotes lending to smaller businesses during an expo in Beijing. Central bank asks lenders to utilize special policy tools, shore up real economy China's central bank has urged banking financial institutions to increase credit supply to smaller businesses. The PBOC also called upon lenders to scale up inclusive financing services, and continually increase credit …

China to stay on 'normal' policy path
4 years ago

China to stay on 'normal' policy path

China Daily  

The People's Bank of China. PBOC report: Interest rates to be kept at low levels to support small firms China will maintain a normal monetary policy for as long as possible and keep interest rates at a relatively low level to support small business financing and maintain ample liquidity in the system, the People's Bank of China, the central bank, …

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