Austan Goolsbee Signals Potential for More Fed Rate Cuts as Inflation Shows Improvement 
Asian Fund Managers Turn More Optimistic on Growth but Curb Equity Return Expectations: BofA Survey 
Singapore Growth Outlook Brightens for 2025 as Economists Flag AI and Geopolitical Risks 
RBA Holds Rates but Warns of Rising Inflation Pressures 
Yen Near Lows as Markets Await Bank of Japan Rate Decision, Euro Slips After ECB Signals Caution 
BoE Set to Cut Rates as UK Inflation Slows, but Further Easing Likely Limited 
Silver Prices Hit Record High as Safe-Haven Demand Surges Amid U.S. Economic Uncertainty 
Chinese Robotaxi Stocks Rally as Tesla Boosts Autonomous Driving Optimism 
Precious Metals Rally as Silver and Platinum Outperform on Rate Cut Bets 
Asian Currencies Trade Sideways as Dollar Weakens Ahead of Key U.S. Data 
Canada Signals Delay in US Tariff Deal as Talks Shift to USMCA Review 
South Korea Warns Weak Won Could Push Inflation Higher in 2025 
Gold and Silver Surge as Safe Haven Demand Rises on U.S. Economic Uncertainty 
China has lowered its benchmark lending rates for the first time since October, signaling a renewed effort to stimulate its slowing economy. The People's Bank of China (PBOC) cut the one-year loan prime rate (LPR) by 10 basis points to 3.0%, down from 3.1%. The five-year LPR, which is closely tied to mortgage rates, was also reduced by 10 basis points to 3.5% from 3.6%.
These rate cuts come shortly after Beijing unveiled a series of sweeping monetary easing measures aimed at boosting liquidity and supporting growth. The majority of new and outstanding loans in China are linked to the one-year LPR, making this move significant for businesses and consumers alike. The five-year LPR’s reduction is expected to ease mortgage burdens and potentially support China’s struggling real estate sector.
The cuts follow a broader trend of economic stimulus as Chinese authorities seek to counteract the impact of persistent trade tensions with the United States and a challenging global economic environment. Earlier this month, the central bank implemented major liquidity injections to shore up market confidence and increase credit availability.
Investors are closely watching Beijing's next steps, as weak domestic demand and global headwinds continue to pressure the world’s second-largest economy. By adjusting interest rates, the PBOC aims to encourage lending, stabilize markets, and support long-term economic recovery.
The policy shift highlights China's commitment to proactive monetary policy as it grapples with complex challenges, including the fallout from U.S.-China trade disputes and structural weaknesses within the domestic economy. With global markets responding to China’s monetary stance, further easing may follow if growth remains under pressure.
