China Further Slashes Funding Costs for Smaller Firms and Rural Sectors

Caixin Global | Jul 1, 2020 at 5:28 AM
  • China’s central bank will cut the rediscount rate by 25 basis points starting July 1, the first such reduction in a decade, Caixin learned from multiple sources.
  • After the reductions, the three-month relending rate for small businesses and rural sectors will be lowered to 1.95%, the six-month rate to 2.15% and the one-year rate to 2.25%.
  • The central bank will also cut the relending rate related to financial stability by 50 basis points, or half of a percentage point, to 1.75%.