On Tuesday, the Chinese Central Bank reduced standard levels of two major interest rates, in the latest attempt by Beijing to enhance growth in commercial tensions with Washington and the decline in the Chinese real estate sector.
The Chinese People’s Bank said in a statement that the interest rate on lending for a year, which is the standard for the most interest rates that banks can provide to companies and families, has been reduced from 3.1% to 3%.
He added that the interest rate on real estate loans for a period of 5 years, which is the approved criterion for mortgage loans, reduced its turn from 3.6% to 3.5%.
In October, the bank had previously reduced these two rates to historically low levels.
China and the United States agreed last week to reduce customs tariffs between them sharply for 90 days, reviving hopes in business circles about a permanent reduction in tensions.
Confronting confrontation
But the ruling party in Beijing is still facing the stagnation of local consumption and a long -term real estate crisis, which threatens the goal of growth, which is about 5% by 2025.
The Chinese National Statistics Authority announced, on Monday, that the country’s industrial production increased by 6.1% in April compared to last year, a higher rate than the expectations of economic experts, the Bloomberg agency polled their opinions.
However, according to the National Bureau of Statistics, the prices of new housing decreased in 67 cities out of 70 cities covered by the survey during the same period, indicating that the real estate market is still fragile.
