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
Topic |   China economy

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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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In 2018, China reported a growth rate of 6.6 per cent with a nominal GDP size of 90 trillion yuan (US$13 trillion). Photo: AFP

China can handle much slower GDP growth rate and still create enough jobs, government economists say

  • The headline gross domestic product (GDP) growth rate slowed to 6.2 per cent in the second quarter of 2019, the lowest figure since records began in March 1992
  • Risks are growing that it could slip below 6.0 per cent next year which would fall outside of the government’s target range of between 6 and 6.5 per cent for 2019
Topic |   China economy

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In 2018, China reported a growth rate of 6.6 per cent with a nominal GDP size of 90 trillion yuan (US$13 trillion). Photo: AFP
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