China cut interest rates for the second time in the last three months – Kommersant

The People’s Bank of China today, August 15, lowered key interest rates, and did it for the second time in the last three months, reports Bloomberg. This time, the bank cut its annual lending rate by 15 basis points, from 2.65% to 2.5%, the biggest cut since 2020. Prior to this, in June, the rate was cut by ten basis points, and now it is at its lowest level since 2014, when it was first introduced. In addition, today the bank also reduced the interest rate on refinancing loans for seven days to 1.8%.

All of these cuts, which came as a surprise to analysts, were made by the bank less than an hour before the release of weaker-than-expected economic data. data for July. Retail sales rose by 2.5%, while growth of 4.5% was expected. Exports in July reached 2.016 trillion yuan ($278 billion), a fall of 9.2% year on year.

According to analysts polled by the agency Reuterstoday’s rate cut signals an intensification of monetary stimulus to support the slowing economic growth, and it opens the door for a potential reduction in China’s base lending rate next week.