The News
China cut its benchmark lending rates Tuesday for the first time since October, slashing both its one- and five-year loan prime rates to historic lows of 3.0% and 3.5% in a bid to boost growth amid the country’s trade war with the US.
Beijing’s cuts follow its policy of cautious monetary easing, weeks after Chinese officials unveiled a previous raft of stimulus measures ahead of trade talks with Washington, which yielded a tentative 90-day tariff reduction between the world’s two largest economies.
Global investment banks raised their growth forecasts on the cuts, but China is still expected to struggle to hit its target of 5%, as weak domestic demand, tariff fears, and deflation drag on growth.
AD