China’s central bank is further loosening its purse strings as the country grapples with a slumping economy and a prolonged trade war with the United States.
On Wednesday, the People’s Bank of China cut its new benchmark lending rates by give basis points. The one-year loan prime rate (LPR) dropped to 4.15% from 4.20% in October. The five-year LPR was cut for the first time since it was introduced a few months earlier, going from 4.85% to 4.8%. The cuts are relatively small, and analysts say further reductions could come as China tries to boost the economy while reining in inflation.