Chinese Central Bank Cuts Rates to Stimulate Slowing Economy
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People’s Bank of China announced a reduction in the refinancing rate from 2.75% to 2.65% on one of the medium-term lending programs. The volume of the annual lending program is 237 billion yuan ($33 billion).
Two days earlier, the Chinese Central Bank lowered refinancing rate from 2% to 1.9% under another program – short-term lending for seven days in the amount of 2 billion yuan ($280 million). In both cases, the bank explained its actions by the desire to “keep sufficient liquidity in the banking system at the proper level.”
Experts explain the actions of the authorities by the desire to stimulate the slowed down economic recovery. “They show their willingness to support the economy, in fact, admitting that the post-COVID recovery is going at a rather weak pace,” he said in an interview with the TV channel. CNBC investment director of the New York brokerage Brendan Ahern.
Also released today data National Bureau of Statistics of the People’s Republic of China that unemployment among youth (16-24 years old) in China reached a new high of 20.8% in May. Previous record of 20.4% was fixed in April.
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