PBoC cuts key loan rate for first time since 2016

Some analysts said yesterday’s reduction, though modest, may be a sign the central bank is turning more proactive.

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

With growth cooling faster than expected and nearing 30-year lows, a number of economists worry there is a risk that Chinese policymakers may be falling behind the curve by moving too cautiously.