National’s Bank of China did not change interest rates

The next meeting of the Chinese Central Bank ended with the adoption of the expected decision. The annual rate on loans was kept at 3.7%. As a result of the previous two meetings of the bank, this rate was reduced by 20 bp. The rate on 5-year loans was left at 4.6%. Last month it was reduced by 5 bp. Experts, evaluating the decision of the Chinese Central Bank, note that in the future the regulator is likely to continue to reduce rates. It will be necessary to support the country’s economy against the backdrop of a slowdown in its growth. The Chinese economy has come under pressure from several issues, including in real estate. Domestic demand is falling, which also harms economic activity. Last year, the Central Bank of China cut its annual lending rate by 30 bps. The rate on 5-year loans was lowered by 15 bp. In 2019, the Central Bank of the country carried out a reform regarding interest rates.

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Arseny Kudrin

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