The People’s Bank of China cut by ten basis points, to 2.85% from 2.95%, the interest rate applied to loan facilities to banks with a one-year maturity, in the first rate cut from April 2020.
The Central Bank of the Asian giant stepped up its intervention by injecting 700 thousand million yuan (96434 million euros) through this 12-month facility, which is an increase of 200 thousand million yuan (27,552 million euros) over the expected maturities.
Similarly, the Corporation also reduced the interest rate applied to refinancing operations due in one week by ten basis points, bringing it to 2.10% from 2.20%.
Through this line, the People’s Bank of China injected 100 thousand million yuan (13776 million euros), compared to 10 thousand million yuan (1377 million euros) that was due on Monday.
The Chinese economy recorded an 8.1% expansion in 2021, the fastest growth rate for the Asian giant since 2011, far exceeding Beijing’s 6% target and in contrast to the 2.2% expansion for 2020, according to national statistics. office (one).
However, in the fourth quarter of 2021, China’s GDP growth was 4% annually, slowing from 4.9% in the third quarter, while compared to the previous three months, the expansion accelerated to 1,6% from 0.7%.
“Economic momentum remains weak amid the recurring virus outbreaks and the struggling real estate sector,” said Julian Evans-Pritchard, chief China economist at Capital Economics, who expects the Chinese central bank to cut interest rates by another 20 basis points during the first half. from this year.
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