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China’s Central Bank Cuts Key Interest Rate to Boost Sluggish Economy: What You Need to Know

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China’s Central Bank Cuts Interest Rates to Boost Economy

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In an effort to stimulate economic growth and provide more financial support to individuals and businesses, China’s central bank has decided to reduce its key interest rate.

The current economic situation in China is being adversely impacted by various factors such as labor market challenges and a global economic slowdown. These factors have resulted in reduced consumption and a decline in demand for Chinese products, leading to difficulties for numerous factories.

To address this issue, the central bank has once again cut the one-year interest rate, which serves as a benchmark for bank loans to both businesses and families. The rate has been lowered from 3.55% to 3.45%.

It is worth noting that the central bank had previously reduced this interest rate in June 2023. However, there has been no change in the interest rate for mortgage loans, which remains at 4.2%.

Source: AFP.

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