The People’s Bank of China has opted to maintain the country’s interest rates at 3.45%, in line with market expectations. Similarly, the 5-year lending rates were retained at 4.2%, aligning with the anticipated and priced-in scenario.<\/p>\n\n\n\n
However, the People’s Bank of China surprised the markets by keeping the interest rate on medium-term lending facility (MLF) loans unchanged at 2.5% last week. These MLF loans amount to approximately 995 billion yuan, equivalent to 138.84 billion US dollars.<\/p>\n\n\n\n
Commerzbank analysts noted that the market had expected the interest rates for one-year and five-year loans to remain at 3.45% and 4.2%, respectively. They also highlighted that China’s foreign direct investment recorded its largest annual decline since 2009 in 2023, falling by 8% in Chinese yuan terms. The decline was attributed to various factors, including China’s economic slowdown, rising global interest rates, increased regulatory and geopolitical risks, and a more stringent Western stance towards China’s technology sector.<\/p>\n\n\n\n
China’s economic performance in the fourth quarter of 2023 was below expectations, with the gross domestic product increasing by 5.2%, compared to the anticipated 5.3% in a Reuters poll. The full-year growth for 2023 stood at 5.2%.<\/p>\n\n\n\n
To address the debt crisis of certain local governments grappling with high debt levels, the Chinese government has issued instructions aimed at managing municipal debts totaling $13 trillion. As part of these efforts, the State Council has directed local governments and state banks to postpone or halt state-financed infrastructure projects in regions across the country where less than half of the planned investment has been completed.<\/p>\n","protected":false},"excerpt":{"rendered":"
The People’s Bank of China has opted to maintain the country’s interest rates at 3.45%, in line with market expectations. Similarly, the 5-year lending rates were retained at 4.2%, aligning with the anticipated and priced-in scenario. However, the People’s Bank of China surprised the markets by keeping the interest rate on medium-term lending facility (MLF) …<\/p>\n","protected":false},"author":9,"featured_media":88945,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[6827,49],"tags":[6849,6832,10697,7903,6947,6885,7163,8812],"class_list":["post-95694","post","type-post","status-publish","format-standard","has-post-thumbnail","","category-daily-economic-reports","category-economic-reports","tag-asia","tag-china","tag-deflation","tag-economic-growth","tag-exports","tag-fed","tag-jerome-powell","tag-tightening"],"_links":{"self":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/95694","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/comments?post=95694"}],"version-history":[{"count":1,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/95694\/revisions"}],"predecessor-version":[{"id":95695,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/95694\/revisions\/95695"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media\/88945"}],"wp:attachment":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media?parent=95694"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/categories?post=95694"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/tags?post=95694"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}