China’s central bank cuts interest rates on medium-term loans By Reuters

SHANGHAI (Reuters) – China’s central bank cut the cost of its medium-term loans to banks on Wednesday, in a move consistent with broad policy easing measures announced a day earlier to support a sagging economy.

The People’s Bank of China (PBOC) said it cut the rate on 300 billion yuan ($42.66 billion) of one-year medium-term lending (MLF) to financial institutions to 2.00 percent from 2, 30%

Auction rates in Wednesday’s operation ranged from 1.90 percent to 2.30 percent, and the total MLF loan balance now stands at 6.878 trillion yuan, the central bank said in an online statement.

A batch of FML loans worth 591 billion yuan expired this month.

On Tuesday, Beijing unveiled its biggest post-pandemic stimulus to pull the economy out of a deflationary funk and return to the government’s growth target.

($1 = 7.0318)