Central Bank of China Interest rate index reduced by 0.2% SME financing support April 20 12:16
The central bank of China announced that it will lower the interest rate index, which is a guideline for financial institutions to lend to corporations, by 0.2%. While the severe economic situation continues due to the new coronavirus, we aim to support the financing of small and medium-sized enterprises, etc., and to prevent bankruptcy and restructuring of employees.
The central bank of China, the People's Bank of China, publishes an index called "LPR" every month, which is a guideline for financial institutions to lend to companies.
This month's LPR was announced on the 20th, down 0.2% from the previous year to 3.85%. This is the effective reduction in the policy interest rate for the first time in two months since February.
The People's Bank of China announced on March 3 that it would lower the deposit reserve ratio of financial institutions and supply over 6 trillion yen in Japanese yen to the market, which is a series of monetary easing measures.
In China, due to the effect of the new coronavirus, the growth rate of GDP = Gross Domestic Product from January to last month, which was announced on January 17, became negative for the first time since 1992, when statistics were published. have followed the economic situation, Xi Jinping Jintao "make monetary policy more flexible, must support the real economy" in the Chinese Communist Party of the meeting had been instructed to.
The People's Bank of China aims to support the financing of small and medium-sized enterprises with successive monetary easing measures and to prevent business failures and employee restructuring.