China Stimulus Measures Weaker-Than-Expected

NTD Newsroom
By NTD Newsroom
August 22, 2023China in Focus

China’s economic decisions once again surprising investors. This time by not cutting an important interest rate. This comes on top of a floundering real estate sector and record high youth unemployment.

China has cut its one-year benchmark lending rate Monday as expected but surprised markets by keeping the five-year rate unchanged.

The five-year rate ties into mortgages. Something that surprised investors given the current housing sector troubles. The idea being a lower rate would increase spending, stimulating the economy.

That’s on top of China’s economy facing wider concerns over a rapidly weakening currency, as the yuan lost nearly 6-percent against the dollar this year, triggering concerns of capital flight.


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