Following a meeting on Tuesday, China’s State Council announced that the People’s Bank of China (PBOC) will provide more than 200 billion yuan ($28.7 billion) in special lending funds to commercial banks to boost loans to companies, Xinhua News Agency reported.
Key quotes (via Bloomberg)
Banks were encouraged to lend to companies in manufacturing and services sector as well as small firms at an interest rate not higher than 3.2%.
Smaller companies will also be able to defer tax payment for another four months from this month, providing 440 billion yuan worth of tax breaks.
Meanwhile, Reuters reported that China’s largest four state-owned banks cut deposit rates, effective Thursday.
AUD/USD is capitalizing on China’s effort to revive its economic recovery, adding 0.20% on the day to trade at 0.6760, at the press time.