China’s central bank has cut its key interest rate to 2.0 percent from 2.3 percent, its biggest cut to date, in a move aimed at reviving the weakening economy.
China’s central bank, the People’s Bank of China, heated up the economic climate by cutting key interest rates. Bankers cut the medium-term lending facility (MLF) rate to 2.0 percent.
Bruce Pang of Jones Lang Lasalle stressed the importance of this measure as part of the economic stimulus package. As “Spiegel” reports, analysts had expected this move. Further rate cuts are possible.
China is suffering from a real estate crisis
The widespread real estate crisis is weighing on China’s economy. Many consumers invested their money in apartments and houses. As real estate values plummet, they are now holding onto their money, crippling domestic demand in China.
The People’s Bank of China announced additional stimulus measures on Tuesday.
