The Chinese economy has recently been shaken by repeated corona lockdowns.
(Photo: dpa)
shanghai China’s central bank kept interest rates unchanged on Tuesday, as expected. The one-year lending rate (LPR) remained at 3.65 percent and the five-year lending rate remained at 4.30 percent. 75 percent of the analysts surveyed by Reuters had expected this result.
Most loans in China are based on the one-year rate, the key rate for five-year loans affects mortgages. With an interest rate cut last month, the central bank in Beijing helped the economy, which had been weakened by the real estate and corona crises.
However, the economy in the Middle Kingdom has recently proved surprisingly resilient despite the corona lockdowns in metropolises such as Shanghai. Industrial production and retail sales grew unexpectedly sharply in August, but the worsening real estate crisis is weighing on growth prospects. The gross domestic product in the country, which has long been spoiled by high growth rates, only increased by a meager 0.4 percent in the spring.