China’s central bank cut a key interest rate on Monday in a bid to reverse the widening post-Covid slowdown in the world’s second-largest economy.
The economy has recently been dragged down by uncertainty in the labor market and a slowing global economy, weighing on demand for Chinese goods.
The financial problems of real estate, With several industry heavyweights on the verge of bankruptcy and struggling to complete projects, it also hits growth in a major way.
The one-year LPR, which serves as a benchmark for corporate loans, dropped from 3.55% to 3.45%The People’s Bank of China (PBoC) said in a statement.
However, the five-year LPR, used to set the price of the mortgagesremained at 4.2%.