Jiang Qiming | China News Service | Getty Images China cut its key lending rates again on Monday, a week after cutting two interest rates in a surprise move. The moves are seen as an attempt to revive credit demand and fire up an economy battered by widespread Covid lockdowns and property debt woes. The People’s Bank of China cut its five-year prime lending rate by 15 basis points to 4.30% from 4.45% and cut its one-year prime rate by 5 basis points to 3.65%. Most new loans in China are based on the one-year LPR. Last week, China’s central bank cut the one-year medium-term lending (MLF) rate to some financial institutions by 10 basis points. It also cut the seven-day resale rate by 10 basis points to 2%. The positive reactions to last week’s rate changes were short-lived, analysts such as Navigate Commodities chief executive Atilla Widnell said. “The new monetary easing/stimulus was seen as futile as ‘whipping a dead horse’ as China’s economy desperately needs consumers back on the streets to spend,” he said in a note. — This is breaking news. Check back for more updates.
