Focus on Arts and Ecology

May 20, 2022 

China's central bank cut a key interest rate for long-term loans by a bigger-than-expected margin at its May fixing on Friday, a second reduction this year, as the country is seeking to boost the demand for loans to prop up the economy.

The reduction followed cuts in both the one-year and the over-five-year rates in January to boost the economy.

Chinese officials have recently pledged measures to fight a slowdown in the world's second-biggest economy, which has been hit by COVID-19 outbreaks in the past couple of months.

Indicators from credit lending, industrial output, and retail sales in April showed that virus outbreaks have taken a toll on the economy. The property sector has also been a drag on growth. In April, the country's property sales in April fell at their fastest pace in around 16 years, while new new-home prices declined for the first time, month-on-month, since December.

(Sources: China Report)