Beijing: China's central bank cut a key interest rate and pumped billions into financial markets Thursday, as fresh data showed the world's second-largest economy was flagging.
The moves are the most significant by leaders to try to invigorate growth after indicators in recent months showed a hoped-for strong recovery following years of Covid lockdown-induced slowing was quickly running out of steam.
China's efforts contrast with those in the United States and other Western countries, which have been forced into a series of interest rate hikes while reducing money supply to tame inflation.
Officials lowered the medium-term lending facility (MLF) rate -- the interest for one-year loans to financial institutions -- 10 basis points to 2.65 percent, the People's Bank of China said in a statement.
The PBOC also said it was offering 237 billion yuan ($33 billion) of funds to banks through the medium-term lending facility, "to maintain reasonable and sufficient liquidity in the banking system".
The announcement comes two days after unveiling a surprise cut in a short-term interest rate this week, which analysts said reflected growing concern about the state of the economy among Chinese policymakers. — AFP
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