The People’s Bank of China can influence the loan prime rate through the rate it charges on its medium-term lending facility (MLF), which it uses to lend Chinese banks extra liquidity at low cost. Photo: Reuters
The People’s Bank of China can influence the loan prime rate through the rate it charges on its medium-term lending facility (MLF), which it uses to lend Chinese banks extra liquidity at low cost. Photo: Reuters

China cuts short-term interest rates slightly in latest bid to help companies hit by US trade war

  • One-year loan prime rate set to 4.20 per cent from 4.25 per cent following rate reductions by US Federal Reserve and European Central Bank last week
  • But China left five-year prime rate, used as reference for mortgage loans, unchanged in further move to keep property prices under control

The People’s Bank of China can influence the loan prime rate through the rate it charges on its medium-term lending facility (MLF), which it uses to lend Chinese banks extra liquidity at low cost. Photo: Reuters
The People’s Bank of China can influence the loan prime rate through the rate it charges on its medium-term lending facility (MLF), which it uses to lend Chinese banks extra liquidity at low cost. Photo: Reuters
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