China's central bank has cut two key lending rates, including a mortgage-linked benchmark for state-controlled bank loans, indicating that the country's post-pandemic rebound is losing momentum.
The move is aimed at lowering borrowing costs for companies and households, and restoring market confidence amid signs of stagnant growth.
While China's GDP grew by 4.5% YoY in Q1 2021, recent economic data shows that the initial recovery is slowing.
The PBOC's rate cuts will lower the cost of new loans and interest payments on existing ones, but are unlikely to drive a sharp acceleration in credit growth given weak credit demand, according to analysts.
