Central Banks
China Cuts One-Year Policy Rate by Most Ever in Stimulus Drive
- PBOC lowers rate of medium-term loan facility to 2% from 2.3%
- MLF trim is prelude to more easing measures to lift economy
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China’s central bank lowered the interest rate charged on its one-year policy loans by the most on record, kicking off a sweeping program to revive confidence in the world’s second-largest economy.
The People’s Bank of China cut the rate of the medium-term lending facility to 2% from 2.3%, according to a statement on Wednesday. The 30-basis-point cut was the biggest since the bank began using the monetary tool to guide market interest rates in 2016.