Analysis: Why China Is Tackling Economic Headwinds With Asymmetric Interest Rate Policy
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In an effort to turn around the property slump and counter other economic headwinds, China slashed its key mortgage reference rate while keeping short-term lending rates steady. Some analysts attribute this asymmetric policy to concerns about further yuan depreciation.
The People’s Bank of China (PBOC) kept its one-year medium-term lending facility (MLF) rate unchanged in February at 2.5%. The policy rate usually affects benchmark lending rates, namely loan prime rates (LPRs).

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