China lowers interest rate on short-term loans
At the beginning of the week, the Chinese central bank lowered the interest rate for short-term loans for the first time since 2015. The interest rate drops from 2.55 percent to 2.5 percent. Experts assume that the central bank intends to counter the weakening economy in the country. On the whole, the Asian money market showed a positive reaction to the announcement: The Hang Seng index in Hong Kong rose by 1.1 percent despite the current critical political situation; the Nikkei index in Japan and the Shanghai stock exchange both rose by 0.5 percent.
At 6.0 percent, growth in the world’s second-largest economy is currently at its lowest level for almost three decades. According to experts, this can also be attributed to the ongoing trade war with the USA. Cheap loans with low interest rates are expected to help stimulate longer-term growth in China’s economy. Reuters