China’s central bank on Tuesday announced new measures to stimulate the economy such as a reduction in liquid deposits, which banks must hold as reserves; and a reduction in the prime interest rate.
Almost two years after the lifting of the preventive measures against covid, the second largest economy in the world has not yet flown despite the measures taken by the authorities to relaunch operations.
The post-pandemic recovery was shorter and stronger than expected, weighed down by a housing crisis, weak consumption and high unemployment, especially among young people.
To try to reverse this situation and to achieve the target of 5% growth set by the authorities for this yearconsidered optimistic by analysts, the central bank presented a series of stimulus measures on Tuesday.
China “It will reduce the minimum reserve ratio and the base interest rate” for banking groups and “cut the reference interest rate in the market,” its governor, Pan Gongsheng, said at a news conference in Beijingwho said:
The reserve ratio requirement will soon be reduced by 0.5 percentage points to provide long-term liquidity to the trillion-yuan (over $140 billion) financial market.
The authorities will also “reduce interest rates on existing mortgage loans and unify the down payment ratio for mortgage loans,” he said.
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2024-09-24 13:27:16
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