- Crunch time looms for BHP's bid buy Anglo American
- Kane to face old club Spurs for first time in Seoul
- Markets rise as traders cheered by China property plan
- Black farmers in Brazil changing views on coffee production
- Iran's President Raisi declared dead in helicopter crash
- Australia police arrest 554 in domestic violence crackdown
- South Korea, Britain host AI summit with safety top of agenda
- New president Lai vows to defend Taiwan's democracy
- Forever fad: Rubik says his cube 'reminds us why we have hands'
- Trump eyes witness stand as trial draws to a close
- Ryanair annual profit jumps on higher demand, fares
- High-priced Cummins, Starc face off as IPL enters playoffs
- Iran media says President Raisi died in helicopter crash
- Dominican Republic President Abinader re-elected to 2nd term
- New Taiwan president Lai hails 'glorious' democracy
- New Caledonia separatists defy French efforts to unblock roads
- Timberwolves knock out defending champion Nuggets, Pacers oust Knicks
- Trump biopic hits Cannes Film Festival
- Iran President Raisi's helicopter found, 'no sign of life'
- Three talking points ahead of 2024 French Open
- 'Haikyu!!': Comic heroes fuel Japan Olympic volleyball manga mania
- Timberwolves rally to knock defending champion Nuggets out of NBA playoffs
- London court set to rule on Julian Assange extradition
- Business and Bollywood votes in India election
- Pope calls anti-migrant attitudes at US border 'madness'
- Mexico aims to be big economic winner from US-China tensions
- Uncertain future for thousands after deadly Brazil floods
- Schauffele makes the putt of his life for first major win
- Wirtz returns to help unbeaten Leverkusen chase history
- Search for Iran's President Raisi after helicopter goes missing
- DeChambeau's powerful putting has him excited for US Open
- Taiwan to swear in new president as China pressure grows
- Atalanta can end 61-year wait for trophy in Europa League final
- Schauffele birdies final hole to capture PGA for first major win
- Guardiola casts doubt over long-term Man City future
- Hollywood icons Costner and Demi Moore make Cannes comeback
- Pacers shoot down Knicks to reach NBA Eastern Conference finals
- Schauffele birdies final hole, captures first major at PGA Championship
- McLaughlin powers to Indy 500 pole in all-Penske front row
- Monaco footballer tapes over LGBTQ badge
- Korda wins sixth LPGA title of year with win at Liberty National
- Pacers put on shooting show to down Knicks, reach NBA Eastern Conference finals
- US envoy touts 'potential' of Israel-Saudi deal in Netanyahu talks
- Dominicans vote for president in poll overshadowed by Haiti crisis
- Brest secure Champions League qualification, PSG win without Mbappe
- Mbappe absent as PSG win final Ligue 1 game
- Still exhausted after arrest, Scheffler closes with 64 at PGA
- Brest secure historic Champions League qualification
- France's Macron calls fresh emergency on New Caledonia unrest
- Taiwan swears in new president as China pressure grows
China central bank cuts benchmark lending rate to boost economy
China's central bank on Tuesday cut a key benchmark lending rate used to price mortgages, as Beijing seeks to boost its flagging growth.
Officials in China have struggled to kickstart economic growth as they battle a range of headwinds, including a prolonged property-sector crisis, soaring youth unemployment and a global slowdown that has hammered demand for Chinese goods.
The five-year loan prime rate (LPR) was lowered from 4.2 to 3.95, the People's Bank of China announced -- its first cut since June.
It is the largest cut to the rate since it was introduced in 2019, according to Bloomberg, and lower than that expected by economists polled by the financial news wire.
The one-year LPR, which serves as a benchmark for corporate loans, remained unchanged at 3.45 percent. The one-year rate was last lowered in August, while the five-year LPR had previously been reduced in June.
Tuesday's moves are aimed at encouraging commercial banks to grant more credit and at more advantageous rates.
They come in stark contrast to most other major economies, where rates have been raised in a bid to curb inflation -- part of a global slowdown that is hitting demand for China's exports, long a key driver of growth.
The decision follows a series of mixed indicators for the world's second-largest economy.
China last year recorded one of its worst annual growth rates since 1990, dampening hopes for a rapid economic recovery following the end of draconian Covid restrictions in late 2022.
Activity is also being hit hard by an unprecedented crisis in real estate, a key engine of Chinese growth that has long represented more than a quarter of the country's GDP.
In January, consumer prices fell at their quickest rate in more than 14 years, piling pressure on the government to make more aggressive moves to revive the battered economy.
Deflation can be a brake on the profitability of companies and harms employment and demand in the long term.
Last month, Beijing announced it would cut the amount banks must hold in reserve, known as the reserve requirement ratio.
Policymakers have in recent months announced a series of targeted measures as well as the issuance of billions of dollars in sovereign bonds, aimed at boosting infrastructure spending and spurring consumption.
But that, and recent announcements including central bank interest rate cuts and measures to boost lending, have had little impact so far.
Analysts say a "bazooka" stimulus plan is needed to restore confidence.
There were some bright spots, however. Official data showed Sunday that consumption rebounded during the recent Chinese New Year holidays, exceeding even pre-pandemic levels.
But analysts cautioned that the slightly longer-than-usual holiday period this year meant a comparison would likely be distorted.
A.Gasser--BTB