China has lowered lending standards in its first easing of this kind in ten months, aiming to support a sluggish recovery in the world's second-largest economy. This latest monetary easing comes as signs emerge that China's post-COVID recovery is losing momentum after the gains made in the first quarter of the year. Beijing has reduced the one-year loan prime rate by ten basis points to 3.55 percent, and the same margin applies to the five-year loans, bringing it down to 4.20 percent from 4.30 percent. A Reuters survey of 32 market participants showed that all respondents expected a reduction in both rates. The People's Bank of China (central bank) had lowered short- and medium-term interest rates last week, indicating it is on the verge of initiating another round of monetary easing to boost recovery.
China Lowers Lending Standards
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