China’s central bank, the People’s Bank of China (PBC), unexpectedly decided to cut interest rates by 10 basis points.
The one-year loan prime rate (LPR) fell to 3.35 per cent, while the over-five-year LPR fell to 3.85 per cent. The bank kept the one-year rate at 3.45% from August 2023 and the five-year rate at 3.95% from February 2024.
The consumer inflation in China increased slightly, whereas producer inflation declined. Meanwhile, the country’s gross domestic product (GDP) grew by 4.7 per cent in the second quarter of 2024, below market expectations.
The PBC rate cut was seen as a step towards revitalising the weakening economy.
