Overall, the adjustment was 10 basis points
The People’s Bank of China unexpectedly lowered lending interest rates by 10 basis points, surprising financial market participants. WNTab reported this on Monday, July 22.
In particular, the basic interest rate for one-year loans was reduced to 3.35% from 3.45%, and for five-year loans, it was reduced to 3.85% from 3.95%. Later, the PBOC similarly reduced the terms of the standing lending facility for commercial banks that use it for additional funding needs. The regulator also changed the seven-day reverse repo rate from 1.8% to 1.7%.
Obviously, this decision was an attempt to revive the activity of the world’s second-largest economy, which is currently on the brink of deflation, and is also experiencing a real estate crisis, rising debt, and deteriorating consumer and business sentiment.
Additionally, the People’s Bank of China relaxed collateral requirements for medium-term loans, allowing banks to free up some funds by selling securities.
Previously, WNTab reported that the current US President Joe Biden officially withdrew from the race for the next head of state.
