China cuts key interest rate to support economy

China’s central bank on Monday cut a key interest rate in an attempt to counter the post-Covid growth slowdown in the world’s second-largest economy.

Activity has been dragged down recently by uncertainty in the labour market and global economic sluggishness, weakening demand for Chinese goods.

Financial troubles in the real estate sector, with several leading developers on the verge of bankruptcy and struggling to complete projects, also pose a major obstacle to growth.

The People’s Bank of China said on Monday cut the one-year loan prime rate, which serves as a benchmark for corporate loans, from 3.55 per cent to 3.45 per cent.

Source: punch