China cuts key interest rate to 1.4%

Stay informed with free updates

Just sign up to Chinese economy MYFT DIGEST – Shipped directly to your inbox.

China said it would cut its support rate and reduce the number of monetary banks, which is necessary to keep as reserves, offering support for the economy against the trading war.

China will reduce the ratio of bank reserve demand by 0.5 percentage points and a few major interest rates to issue a long-term liquidity by the banking system for long-term liquidity RMB1TN (138 billion).

Ts, on Wednesday’s two other financial regulatory agencies, the press conference said that the Central Bank will cut the seven-day repo’s criterion to 1.4% and reduce interest rates on deposit and interest rates.

Beijing went out with the United States in the conditions of a bruising trade war, which began to hit the country’s huge production sector, and many export orders were canceled and lowered from production.

On Wednesday, Beijing and Washington stated that they would hold their first trade talks, as US President Donald Trump began a trade war against China, as both sides are looking for a reduction of punitive tariffs.

The trading war comes, as China is already fighting against weak internal demand, forcing Beijing easing the successive channels of monetary policy since last year.

The Pan said that the recent funds were due to the “Uncertainties of the World Economic, Economic Partition and Trade Tensions that hinder the global industrial supply chains.”

The ratio of bank reserve demand to reduce the average calculation from 6.6% to 6.6% through the sector.

Analysts say that policy agreement reflects Beijing’s desire to support its economy and promote market trust before the US-China talks.

“The package schedule is closely linked to US-China trade negotiations,” said Lin song, the chief economist for bigger China. “Rolling from great events now helps to avoid a knee-shocking reaction for tariffs.”

The PBOC will also cut the demand for financial leasing and financial companies from 5% to zero, a step that will release capital and improve their lending capabilities.

The cost of providing long-term loans headed by the Government of Housing to be cut by 0.25 percentage points, according to 2.6%, Pan is to “support the hard housing needs of the residents.”

Lee Yunze, Director of National Financial Administration, Director of the Financial Observants, said that China will provide new funds to support exporters “to stabilize their operations.”

He added that China will also provide new funding mechanisms to assist in the real estate disease and expand a pilot program to enter more funds to flow more from insurance companies.

“We fully use the advantages of insurance funds as patient, long-term capital and allow it to enter and stabilize the market with greater force,” said Lee.

Morgan Stanley’s chief China China Robin Xing said that the position of the common policy remained “reactive and supplied and center” and can partially compensate for tariffs. But he said:

“RRR CUT is one of the vital steps to alleviate
Economic impact [caused by tariffs]On Wednesday, the panel in Vahlis states that Hanewey XU, more than China’s senior China economist.

Hong Kong’s Hang Seng Index is open 2.2 percent, but lies have been reduced late. The Mainland China CSI 300 index closed by 0.61 percent. Offshore Renminbi, who trades freely, was an apartment during the day, in front of a dollar RMB7.22.

Additional report by Venji Ding in Beijing