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Shanghai (Reuters) – China’s central bank cut interest rates on medium-term loans to banks on Wednesday.
The People’s Bank of China (PBOC) said it had cut the interest rate on 300 billion yuan ($42.66 billion) of one-year medium-term loans (MLF) to 2.00 percent from 2.30 percent. In addition, the PBOC allotted another 196.5 billion yuan through 14-day reverse repos and left the interest rate unchanged at 1.85 percent.
The move follows the announcement of the largest economic stimulus package since the pandemic on Tuesday. The aim of the government in Beijing is to bring the economy out of deflation and to meet the government’s growth targets again.
