Daily Management Review

Central Bank of China lowers key rate for the first time since 2015


On Tuesday, the People’s Bank of China lowered its key interest rate, which should help reduce the cost of financing amid a slowdown in economic growth.

The bank said in a statement that the rate via the medium-term lending facility (MLF) will be lowered to 3.25% from 3.3%.

The central bank uses this program to inject liquidity into commercial banks, and the rate on it greatly affects the loan rate for first-class borrowers (Loan Prime Rate).

On Tuesday, the central bank poured 400 billion yuan ($ 57 billion) into the banking system as part of the MLF prpgram. This amount is equal to the amount of loans maturing on Tuesday.

China has not lowered its key interest rate since 2015. According to analysts, this reflects intention of the authorities to restrain real estate prices.

However, the continued slowdown in the economy and the trade conflict with Washington forced the central bank to take other measures to mitigate monetary policy. For example, it lowered reserve standards for commercial banks and allowed the yuan to decline against the US dollar.

The measure taken on Tuesday should reflect on the cost of borrowing, but it will not apply to loans already issued and will not affect deposit rates.

Monetary easing in other key economies has created room for lower rates in China, despite rising inflation. Last week, the Fed lowered rates for the third time this year. The Central Bank of China raised the MLF rate in 2018 after tightening the Fed's policy.

source: dowjones.com

Science & Technology

Apple to come up with AR glasses

WEF: Big data regulation becomes a problem

Israeli Firm Accused Of Spying By WhatsApp, Lawsuit Filed Against It

Google Used Quantum Computer To Solve Complex Problem

Mars Had Earth-like Salt Lakes

Study: AI is not as profitable as you might think

Porsche, Boeing set to develop flying electric car

Samsung to invest $ 11 billion in new generation displays

US is betting on Nokia and Ericsson to replace Huawei

UPS becomes first to receive full regulatory approval for UAV shipping in USA

World Politics

World & Politics

Vale hiding information about problems at Brazilian dams could result in death of 270 people

US Lawmakers Introduce Bill About Xinjiang Uygur Camps In China

European Council agrees to extend Brexit again

Pressure From China Forces Maserati To Dissociate From Film Awards Event In Taiwan

China to replace Hong Kong's Carrie Lam

Iran warns of new reduction in nuclear deal liabilities

Dominican Republic lost $ 200 million because of scandal with tourists death

France: We will take measures to protect our military in Syria