China’s central bank trims 1-year rate, but unexpectedly leaves 5-year rate unchanged

Home » Business » China’s central bank trims 1-year rate, but unexpectedly leaves 5-year rate unchanged

A night view of the Central Business District in Beijing, China, Nov 10, 2021.Future Publishing | Future Publishing | Getty ImagesChina’s central bank cut its one-year loan prime rate Monday, while leaving its five-year rate unchanged. These decisions are weaker than expectations for more muscular policy intervention following a raft of data that pointed to faltering growth momentum in the world’s second-largest economy.The People’s Bank of China trimmed its one-year loan prime rate — the peg for most household and corporate loans in China — by 10 basis points from 3.55% to 3.45%, just shy of the 15 basis points that a majority of economists expected in a Reuters poll. This was the second time China has cut this rate in three months.The PBOC left its five-year loan prime rate — the peg for most mortgages — unchanged at 4.2%, while economists expected a 15 basis point cut due …

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