Left Menu
Development News Edition

UPDATE 1-China c.bank to maintain prudent policy to prevent inflation from spreading

UPDATE 1-China c.bank to maintain prudent policy to prevent inflation from spreading
Image Credit: Wikimedia

China's central bank said on Saturday it will maintain a prudent monetary policy to prevent inflation from spreading.

In its third-quarter monetary policy report, the People's Bank of China (PBOC) also said it was studying plans to switch the benchmark rate for existing loans to the new loan prime rate (LPR). China's economic growth for the third quarter tumbled to its slowest pace in nearly three decades, under pressure from slowing global demand and the ongoing trade war between China and the United States.

At the same time, China's consumer inflation has quickened to a nearly eight-year high of 3.8%, driven in part by soaring pork prices as a result of an outbreak of African Swine Fever in the country, posing a dilemma for the central bank. "The PBOC is increasingly concerned about rising CPI inflation and inflation expectations," economists at Nomura said in a note on Friday, saying those risks may incline policymakers to lower profile easing measures in the near term.

The PBOC had unexpectedly made a 200 billion yuan ($28.60 billion) liquidity injection earlier in the day. Despite the higher inflation rates the central bank is expected to lower the LPR next Wednesday, for the third time since it was introduced in August.

The introduction of the LPR – a lending benchmark for new bank loans to households and businesses - is part of a broader packet of reforms the central bank is exploring to reduce corporate borrowing costs in the world's second-largest economy. In Saturday's report, the PBOC reiterated that it would continue to significantly lower real interest rates through reforms.

It said the weighted average lending rate fell 4 basis points in the third quarter to 5.62%. The PBOC also said that it would strengthen counter-cyclical adjustments in light of the rising downward pressure on the economy. ($1 = 6.9941 Chinese yuan)

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)



Hyderabad Encounter: Time to review modern judiciary and restore people’s confidence

Its probably for the first time in the history of independent India, the parliamentarians, chief ministers and ministers in the Union and State governments are openly supporting an encounter. This indicates the people from top to bottom hav...

What happens to your outstanding loans if the bank falls?

... ...

Time for a change! Innovations to stop the growing plastic pollution

As the planet is drowning in plastic pollution, many new innovative approaches and solutions have emerged to effectively deal with the menace....

How to avoid fake universities and fishing bait like Farmington

As education sharks are roaming around to prey, we present a guide on how to mitigate hunters and reach to a genuine universityinstitute. In this era of commercialization of education, the fake universities and economic frauds in educationa...


Latest News

UPDATE 2-Democrats huddle to draft impeachment charges against Trump

Democrats in the U.S. House of Representatives met behind closed doors on Saturday to prepare for what could be the final week of their months-old impeachment inquiry that has imperiled Donald Trumps presidency. The House Judiciary Committe...

UPDATE 2-Golf-Stenson wins World Challenge as Woods fades

Henrik Stenson almost made albatross at the 15th hole en route to a one-shot victory over Jon Rahm at the Hero World Challenge on Saturday as tournament host Tiger Woods faded down the stretch in the Bahamas.Stenson hit a mighty approach sh...

Mavericks pile on to send Pelicans to 8th straight loss

Luka Doncic scored 26 points as Dallas stayed hot while the New Orleans Pelicans remained cold in the Mavericks 130-84 victory Saturday afternoon. Boban Marjanovic added 15 points and 16 rebounds, Tim Hardaway Jr. and Jalen Brunson scored 1...

Pakistan: Week after abduction by gunmen, law student returns home

A 20-year law student, Dua Mangi, who was abducted by unknown men last week under suspicious circumstances from Karachis Defence area, has returned home on Saturday, South Zone DIG Sharjeel Kharals office confirmed. On November 30, Mangi, w...

Give Feedback