{"id":2006949,"date":"2023-08-21T13:23:02","date_gmt":"2023-08-21T17:23:02","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/china-cuts-lending-rates-again-as-it-works-to-curb-economic-slowdown\/"},"modified":"2023-08-21T13:24:13","modified_gmt":"2023-08-21T17:24:13","slug":"china-cuts-lending-rates-again-as-it-works-to-curb-economic-slowdown","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/china-cuts-lending-rates-again-as-it-works-to-curb-economic-slowdown\/","title":{"rendered":"China lowers lending rates again to combat economic slowdown."},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">18<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fchina-cuts-lending-rates-again-as-it-works-to-curb-economic-slowdown%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2006949&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><h2>China Cuts Benchmark Interest Rate\u2064 Amid Economic Concerns<\/h2>\n<p>China\u200d has taken action to address its mounting economic woes, signaling growing concerns in Beijing about the country&#8217;s trajectory. The People&#8217;s Bank of China has made a modest \u2064cut to its one<a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/euro-back-below-parity-vs-dollar-again-gas-crisis-weighs\/\" title=\"Euro back below parity vs dollar again, gas crisis weighs\">-year loan prime rate<\/a>, reducing it \u2064by a tenth of a percentage point to 3.45%. However, the five<a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/china-cuts-lending-rates-again-as-it-works-to-curb-economic-slowdown\/\" title=\"China lowers lending rates again to combat economic slowdown.\">-year rate remains unchanged<\/a> at 4.2%.<\/p>\n<h3>Experts Predicted Larger Rate Cuts<\/h3>\n<p>Many economists had anticipated that the Chinese central bank would cut both rates. \u200dHowever, the \u2062decision to implement only a single rate cut may be \u2063due to\u200c the weakening yuan, which limits China&#8217;s \u2063ability to ease \u200dits monetary policy.<\/p>\n<blockquote>\n<p>&#8220;Probably China limited the size and scope of rate cuts\u200b because they are concerned about downward pressure on the yuan,&#8221; said Masayuki Kichikawa, \u200bchief macro strategist at Sumitomo Mitsui DS \u2062Asset Management.<\/p>\n<\/blockquote>\n<p>Just days ago, Beijing surprised the market with an unexpected cut to\u200b its <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/china-leaves-lending-benchmarks-unchanged-amid-global-rates-squeeze\/\" title=\"China leaves lending benchmarks unchanged amid global rates squeeze\">medium-term policy rate<\/a>. This move is aimed at stimulating demand, but it\u2063 also raises concerns about inflation. Western countries, including the United States, have been grappling with high inflation and have responded by <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/federal-reserve-delivers-bad-news-about-expectations-for-inflation-raising-interest-rates-report\/\" title=\"Federal Reserve Delivers Bad News About Expectations For Inflation, Raising Interest Rates: Report\">raising interest rates<\/a> and tightening monetary policy.<\/p>\n<p>China&#8217;s economic recovery from the\u200b pandemic has been lackluster, and \u2064the country is facing various macroeconomic challenges. Consumer prices\u2063 fell by 0.3% in July, indicating deflation and a decline in demand. Additionally, GDP growth is slowing after years of\u200d rapid expansion, which \u200chas\u200c broader\u2064 economic implications beyond Asia.<\/p>\n<p>The property crisis in\u2063 China \u200cis\u2063 another pressing issue, with major developer China Evergrande Group filing for bankruptcy protection. Furthermore, the youth unemployment rate has reached new \u2064highs, prompting speculation that Beijing may be trying to obscure\u2063 the\u2064 true extent of the economic situation.<\/p>\n<blockquote>\n<p>&#8220;While the economic slowdown in China has significant implications for Beijing, it also has the potential to impact the U.S. \u200ceconomy and other Western countries due \u200dto the interconnectedness of the global economy,&#8221; \u200bwarns Scheherazade Rehman, a professor of international finance at George Washington University.<\/p>\n<\/blockquote>\n<p>The U.S. agriculture and energy sectors \u2063could be particularly affected \u2063by a decline in \u2063demand from China, as the country is a major importer and consumer of\u2064 American agricultural products and\u2062 energy resources.\u2064 This could result\u200d in job \u200dlosses \u200bdomestically and disrupt existing supply\u2062 chains.<\/p>\n<p><a href=\"https:\/\/www.washingtonexaminer.com\">Click here<\/a> to read more from The Washington Examiner.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>In response to growing economic concerns, China has reduced its benchmark interest rate, indicating Beijing&#8217;s worry about the country&#8217;s direction. The cut was smaller than expected, but the People&#8217;s Bank of China still lowered the one-year loan prime rate by 0.1%.<\/p>\n","protected":false},"author":1,"featured_media":2006950,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[538],"tags":[],"class_list":["post-2006949","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-washington-examiner"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2006949","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2006949"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2006949\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2006950"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2006949"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2006949"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2006949"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}