Interest rate cut from the People's Bank of China

In the statement made by the People's Bank of China (PBoC), the interest rate on one-year loans was reduced from 2.95 percent to 2.85 percent, and the interest rate on seven-day reverse repo agreements from 2.2 percent to 2.1 percent. reported.

Thus, the bank cut the one-year loan interest rate for the first time since April 2020. This move of the bank came just before the growth data announced in the country.

According to the data released today, the country's economy grew by 4 percent annually in the last quarter of last year, above expectations. Thus, the growth in the Chinese economy, which was 2.2 percent in 2020, was 8.1 percent in the whole last year.

Analysts said that the Chinese economy grew above expectations in the last quarter with the support of strong exports. Pointing out that the central bank supports the economy with interest rate cuts, analysts noted that the steps to stimulate consumption may continue.

Analysts also stated that the PBoC, which cut reserve requirements and policy rates in December last year, may continue to cut interest rates to support the economy.