China loan rates for one-year are now at 3.80% after being cut from 3.85% and the five-year remains unchanged at 4.65%. 

The move comes in the wake of renewed economic risks relating to the spread of the covid-19 variant and due to the headwinds that face the economy due to the nation’s property-market downturn.

The cut was well telegraphed following announcements from the PBoC earlier in the month where the central bank said that it will reduce most banks’ reserve requirement ratios by 0.5 percentage points, releasing 1.2 trillion yuan ($188 billion) of liquidity. Premier Li Keqiang has said that China has room for a variety of monetary policy tools, including cutting the RRR.

President Xi Jinping has pledged to stabilize the economy in 2022 amid a liquidity crunch among developers that’s roiled the nation’s bond market.

USD/CNH has fallen within the 6.3897 / 6.3838 range on the day.