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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