BUSINESS China's central bank lowers refinancing, rediscount rates from July 1

BUSINESS

China's central bank lowers refinancing, rediscount rates from July 1

CGTN

13:15, July 01, 2020

01.png

File photo: VCG

China's central bank said it will lower relending and rediscount rates by 25 basis points respectively, to bolster small businesses and rural sectors hit by COVID-19.

Starting from Wednesday (July 1), the rediscount rates will be cut by 25 basis points to two percent. The rates of three-month, six-month and one-year reloans supporting agriculture, and small firms will be 1.95 percent, 2.15 percent and 2.25 percent after the cut, said the People's Bank of China (PBOC).

This is the second adjustment this year. In May, the central bank cut the relending rates to 2.5 percent from 2.75 percent.

Meanwhile, the PBOC will lower the interest rates of financial stability relending loans by 0.5 percentage points to 1.75 percent. 

The country has rolled out a slew of measures to cushion the economic blow from the epidemic, and help virus-hit businesses weather through the difficult period.

For instance, the central bank in February issued special reloans of 300 billion yuan (about 42.5 billion U.S. dollars) and pumped 1.2 trillion yuan into the financial system via reverse repos.

In addition, a State Council meeting in March said the relending and rediscount quota for small and medium-sized banks will be expanded by one trillion yuan to support private businesses and small firms.

Related Stories

Terms of Service & Privacy Policy

We have updated our privacy policy to comply with the latest laws and regulations. The updated policy explains the mechanism of how we collect and treat your personal data. You can learn more about the rights you have by reading our terms of service. Please read them carefully. By clicking AGREE, you indicate that you have read and agreed to our privacy policies

Agree and continue