Interest rates: China cuts loan rate as it battles coronavirus impact

China cuts benchmark lending rate as economy struggles

China cuts benchmark lending rate as economy struggles

The central bank lowered the interest rate for the medium-term lending facility (MLF), a major reference rate for the LPR, by 10 basis points on Monday, while injecting 300 billion yuan (about 42.8 billion USA dollars) into the financial market through reverse repos and MLF.

Analysts polled by Reuters had predicted new yuan loans would rise to 3.00 trillion yuan in January, up from 1.14 trillion yuan in the previous month and compared with the prior record 3.23 trillion yuan a year earlier.

The Australian dollar fell to new decade-plus lows on Thursday after China's central bank cut key interest rates to try and support the economy hit by the COVID-19 virus.

The LPR cut followed a similar move in the central bank's medium-term lending rate on Monday as policymakers sought to ease the drag to businesses from the coronavirus outbreak.

That leaves investors betting there's more monetary and fiscal stimulus to come. "They do not want fuel expectations that they will be easing aggressively", Mishra said.

China cuts 1-year loan prime rate by 10 bps, 5-year loan prime rate by 5 bps.

Weakness in the Chinese yuan helped push the Aussie lower after the People's Bank of China cut benchmark interest rates.

Image result for China cuts benchmark lending rate to lower financing costs

Some analysts say the minor cut to the 5-year LPR likely signaled that authorities wanted to avoid stoking a property bubble and causing more damage to the economy in the longer run.

The cut is meant to lower borrowing costs for businesses struggling with a slump in trade.

Thursday saw the Chinese government report a slowdown in the number of new cases of infection.

The world's second-biggest economy, already grappling with growth at its weakest in nearly three decades as a trade war with the United States took its tool, had shown some signs of stabilization just before the epidemic hit.

Some see Q1 as low as 3%.

The LPR, released on the 20th of every month, is based on rates of the central bank´s open market operations, especially medium-term lending facility rates.

Common antibiotics tied to increased risk of birth defects, study suggests
Despite this, results being largely unchanged after further analyses suggested that their findings hold up. Macrolide antibiotics include erythromycin , clarithromycin , and azithromycin .

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