Key rate cut gives market major boost

Given that the Chinese government has the fiscal and monetary policy space to support growth, Kristalina Georgieva, managing director of the International Monetary Fund, told Reuters

BEIJING: The latest reduction of a key benchmark lending rate in China on Friday significantly boosted market confidence, delivering a strong signal that the nation is determined to fully leverage multiple tools to safeguard economic stability, experts say.

The reduction in the over-five-year loan prime rate, a key reference for home mortgages, was greater than market expectations and the biggest on record, and will help reduce financial burdens on the real economy, stabilise the housing market and drive up growth in consumption and investment, they said.