Including Monday's reduction, China's one-year LPR has dropped by a total of 40 basis points since last August when it unveiled a key reform to use the LPR to better reflect market changes and steer borrowing costs lower to support the real economy.
The raft of measures have taken effect in boosting market liquidity. In the first quarter, the new yuan-denominated loans hit 7.1 trillion yuan (about 1 trillion U.S. dollars), the highest quarterly level in history, said the central bank, adding that the credit structure has been optimized and the credit support is becoming more targeted and effective.
Yet, the PBOC's current approach is more moderate and measured than the U.S. Federal Reserve's latest bold moves such as steep rate cuts and quantitative easing, said Ren Zeping, chief economist of Chinese property developer Evergrande.
The "ammunition" in China's monetary policy toolbox is sufficient, said Ming Ming, an analyst with CITIC Securities, noting that with improved structural tools, intensified financial regulation and optimized capital flow, a deluge of strong stimulus policies similar to those favored by the country during the 2008 global financial crisis may not appear.
Ping An Securities analyst Zhang Ming said the Chinese government has stepped up its de-leveraging campaign to defuse financial risks since 2016, and it will refrain from a massive monetary and credit stimulus package.
China will also lean on fiscal stimulus to spur infrastructure investment and consumption as stimulating domestic demand plays the main role in pumping up the economy, analysts said.
【国内英语资讯:Economic Watch: With key rate cuts, China ramps up stimulus to bolster economy】相关文章:
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