China central bank cuts medium-term loan rate for first time since 2016 as growth cools

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China central bank cuts medium-term loan rate for first time since 2016 as growth cools
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China's central bank cut the interest rate on its medium-term lending facil...

SHANGHAI - China’s central bank cut the interest rate on its medium-term lending facility on Tuesday for the first time since early 2016, as policymakers work to prop up a slowing economy hit by weaker demand at home and abroad.

The PBOC said it had injected 400 billion yuan into financial institutions via the liquidity tool, slightly less than a batch of MLF loans worth 403.5 billion yuan due to mature on Tuesday. “Beijing will likely introduce more policy easing measures in coming quarters to stabilize market sentiment and bolster growth, but the space is much more limited than in previous easing cycles, especially with surging CPI inflation,” they said.

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