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BEIJING (Reuters) – China’s central bank said it may cut interest rates from the current level of 1.5% “in due course” by 2025, the Financial Times reported on Friday citing the bank’s comments. newspaper.
The People’s Bank of China said it would prioritize “partial interest rate adjustments” and move away from “multiple targets” for credit growth, as it launched an interest rate reform program that advisers The government called it “hard work.”
China’s key rate is its seven-day repo rate, which it last cut from 1.7% to 1.5% in late September.
At a high-level economic summit in December, China’s top leaders vowed to cut interest rates “at the right time” and reduce the number of big banks to be bailed out, as part of the effort extensive promotion of loans and investments. in an ailing economy.
The country’s top policymakers also pledged at the Central Economic and Employment Conference to increase the budget deficit and loosen monetary policy, as the world’s second-largest economy braces for more trade tensions with the United States. when Donald Trump returned to the White House.
China’s economy has shown an over-reliance on manufacturing and imports in the past year, with household demand disappointing as a severe commodity market crisis erodes consumer wealth and the government’s influence largely it goes to manufacturers and infrastructure.
Government advisers are urging Beijing to keep its growth target unchanged this year, but have also called for stronger fiscal stimulus to boost depressed domestic demand.
Chinese President Xi Jinping said on Tuesday that the country’s gross domestic product in 2024 is expected to exceed 130 billion yuan ($17.81 trillion), adding that policymakers will implement new policies to promote growth through 2025.
($1 = 7.2994 lots)
