Beijing, China – In a move aimed at bolstering its slowing economic recovery, China has lowered its one-year and five-year loan prime rates (LPR) by 10 basis points, marking the first easing in 10 months. This decision has led to a decline in the value of the yuan, with the onshore yuan concluding the domestic session at 7.1744 per dollar, the weakest closing rate since November 28.
Yuan Slides as China Cuts Interest Rates
Simultaneously, the offshore yuan experienced a 0.2% decrease, standing at 7.1827 per dollar, lingering near last week’s low of 7.1916. Chris Turner, the global head of markets at ING, commented on the situation, stating, “Chinese authorities are concerned about weak growth but are wary about re-inflating the property bubble, so expectations of large stimulus to the property sector might not be met. The market is moving towards the view that fiscal stimulus might be lukewarm, and that’s one of the reasons why the renminbi is staying soft
- Firefight Erupts as Israeli Raid in Jenin, West Bank Leaves Several Palestinians Dead
- As Exchange Rate Hits N702/$, Airline Ticket Prices Soar
However, the most pressing issue for policymakers is the persistently high unemployment rate. Particularly alarming is the unemployment rate among individuals aged 16 to 24, which surged to 20.8% last month, surpassing the previous record set in April.
Fu Linghui, spokesperson for the National Bureau of Statistics, revealed that over 6 million people in this age group were unemployed in May. This alarming revelation emphasizes the urgent need for measures to address the employment crisis.