Posted on 05/06/2025 6:37:07 PM PDT by janetjanet998
BEIJING (AP) — China’s central bank has cut a key interest rate as U.S. tariffs threaten the economy. People’s Bank of China Governor Pan Gongsheng announced Wednesday that the lending rate to commercial banks would be reduced by 0.25 percentage points to 1.5%. The central bank also reduced the reserve ratio — the amount of money banks must hold in their reserves. The move comes as high tariffs imposed by U.S. President Donald Trump start to take a toll on China’s export-dependent economy.
(Excerpt) Read more at apnews.com ...
Which poses a problem for China’s debt, because low interest rates will inhibit selling their bonds.
Next they will devalue the yuan again.
China is on the ropes.
Chinese buy mainly Chinese produced products, so I’m not sure how devaluing the yuan will hurt them. I guess that depends how much China has to import raw materials to pay for domestic produced products?
China just blinked
“Next they will devalue the yuan again.”
Another thing they typically do, is a big stimulus program, where they spread around a few trainloads of freshly printed new Yuan.
Much of what I am seeing and reading shows that China has a very limited internal consumer market, add to that most Chinese have invested their wealth in real estate which has plummeted in value, then add factories closing down and workers with sometimes months of unpaid wages now unemployed and things don’t look good for the average Chinese citizen
Then you have plummeting revenue for CCP, and local and regional govts in huge debt and main source of revenue, that is leasing land, mostly gone and that is not good
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