China cuts medium-term lending rates as economy sputters

SHANGHAI  – China’s central bank cut the borrowing cost of its medium-term policy loans for the first time in 10 months on Thursday, in line with expectations, as Beijing ramps up stimulus measures to shore up a shaky economic recovery.

The People’s Bank of China (PBOC) said it lowered the rate on 237 billion yuan ($33.1 billion) of one-year medium-term lending facility (MLF) loans to some financial institutions by 10 basis points to 2.65 percent from 2.75 percent previously.

In a Reuters poll of 33 market watchers this week, all respondents predicted a cut to the MLF rate, with 94 percent of them expecting a 10-bps cut.

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