Latest news with #stimulusmeasures
Reuters
20-05-2025
- Business
- Reuters
China lowers benchmark lending rates for first time since October
SHANGHAI, May 20 (Reuters) - China cut benchmark lending rates for the first time since October on Tuesday, after Beijing announced sweeping monetary easing measures earlier this month to support the broad economy. The one-year loan prime rate (LPR) was lowered by 10 basis points to 3.0% from 3.1% previously, while the five-year LPR was reduced by the same margin to 3.5% from 3.6%. Most new and outstanding loans in China are based on the one-year LPR, while the five-year rate influences the pricing of mortgages. Chinese authorities have announced a raft of stimulus measures, including interest rate cuts and a major liquidity injection, as Beijing steps up efforts to soften the economic damage caused by the trade war with the United States.
Zawya
09-05-2025
- Business
- Zawya
China's central bank to spur financing support for consumption, trade
China's central bank said on Friday it will spur financial institutions to expand support for consumption and foreign trade amid a protracted trade war with the United States. Beijing stepped up efforts this week to cushion the economic damage caused by the tariff conflict with Washington, announcing a raft of stimulus measures, including interest rate cuts and a major injection of liquidity. The People's Bank of China will maintain its "appropriately loose (stance), flexibly calibrate the intensity and pace of policy implementation based on domestic and global economic conditions and financial market developments," the PBOC said in its first-quarter monetary policy report released on Friday. The central bank will guide financial institutions to ramp up support for consumption, foreign trade, tech innovation, and small businesses, the report said. The PBOC would also employ a mix of policy tools, including reserve requirements, re-lending and open market operations, to keep liquidity ample, and use targeted policy tools to provide low-cost funding support for key consumption sectors. Further, the PBOC said it would issue consumption finance guidelines, directing banks to boost services with focus on key sectors like tourism, hospitality, entertainment, education and household services, while increasing funding for consumption infrastructure and logistics. Separately, the central bank on Friday unveiled a 500-billion-yuan re-lending facility for elderly care and services consumption. The PBOC reiterated that it would keep the yuan basically stable and prevent currency overshooting risks.
CNA
09-05-2025
- Business
- CNA
China's central bank to spur financing support for consumption, trade
BEIJING: China's central bank said on Friday (May 9) it will spur financial institutions to expand support for consumption and foreign trade amid a protracted trade war with the United States. Beijing stepped up efforts this week to cushion the economic damage caused by the tariff conflict with Washington, announcing a raft of stimulus measures, including interest rate cuts and a major injection of liquidity. The People's Bank of China will maintain its "appropriately loose (stance), flexibly calibrate the intensity and pace of policy implementation based on domestic and global economic conditions and financial market developments," the PBOC said in its first-quarter monetary policy report released on Friday. The central bank will guide financial institutions to ramp up support for consumption, foreign trade, tech innovation, and small businesses, the report said. The PBOC would also employ a mix of policy tools, including reserve requirements, re-lending and open market operations, to keep liquidity ample, and use targeted policy tools to provide low-cost funding support for key consumption sectors. Further, the PBOC said it would issue consumption finance guidelines, directing banks to boost services with focus on key sectors like tourism, hospitality, entertainment, education and household services, while increasing funding for consumption infrastructure and logistics. Separately, the central bank on Friday unveiled a 500-billion-yuan re-lending facility for elderly care and services consumption. The PBOC reiterated that it would keep the yuan basically stable and prevent currency overshooting risks.
Reuters
08-05-2025
- Business
- Reuters
China loosens gold import quotas with eye on arresting yuan rally
BEIJING/SHANGHAI, May 8 (Reuters) - China's central bank has approved foreign exchange purchases by some commercial banks to pay for gold imports under recently increased quotas, two people with direct knowledge of the matter said on Wednesday. The People's Bank of China's (PBOC) gold import quotas for the country's big banks determine how much bullion enters the world's leading consumer of the precious metal. It has in the past tweaked these quotas to help calibrate demand for dollars. The sources said the PBOC raised such quotas for gold imports last month and has now also allowed the banks to buy the dollars to fund these gold imports. The move comes on the heels of a raft of stimulus measures announced by Chinese authorities on Wednesday, including interest rate cuts and a major liquidity injection, as Beijing steps up efforts to soften the economic damage caused by the trade war with the United States. It could help lenders meet a significantly increased appetite for gold while slowing the pace of yuan appreciation, one of the sources said. The new quotas come at a time when gold has rallied sharply against the backdrop of market volatility induced by U.S. President Donald Trump's trade war. That has also driven the yuan and other Asian currencies higher as investors unwind carry trades or move money out of U.S. assets and back into Asia. The sources spoke on condition of anonymity because they are not authorised to talk about the matter. The PBOC did not respond to a Reuters request for comment. The increase in gold imports could prevent a sudden rally in the yuan, which would be a double whammy for exporters already under pressure from the intensifying trade tensions between Washington and Beijing. Damage from high tariffs on Chinese goods under U.S. President Donald Trump has started to filter through to economic activities, as seen from slumping new export orders in April. Gold, traditionally seen as a refuge from political and economic uncertainty, scaled an all-time high of $3,500 per ounce last month, boosted by tariff war fears and strong investment demand in China and elsewhere. Despite high gold prices, China's central bank also increased gold reserves for the sixth straight month in April, official data showed on Wednesday.
