The People’s Bank of China has set the 5-year loan prime rate at 4.65% vs 4.65% a month earlier and set the 1-year loan prime rate at 3.85% vs 3.85% a month earlier.
These decisions were with the market’s expectations.
With respect to COVID-19, at a regular briefing with reporters two Friday’s ago, 10th July, representatives of the People’s Bank of China indicated there was little need for more emergency measures.
″(We must) recognize that appropriately lowering interest rates doesn’t mean the lower, the better,” Guo Kai, deputy director of the central bank’s monetary policy department, told reporters, according to a CNBC translation of his Mandarin-language remarks.
Amid the height of the coronavirus outbreak in the first half of this year, Chinese banks loaned a record high 12.09 trillion yuan, according to central bank data.
″(We must) recognize that appropriately lowering interest rates doesn’t mean the lower, the better,” Guo Kai, deputy director of the monetary policy department of the People’s Bank of China, said
“If rates are far too low … that may cause a problem of capital flowing to where it shouldn’t.
AUD/USD: Bulls and bears jostle around 0.7000 amid coronavirus woes