China, the world’s second-largest economy, retained its interest rates steady on Monday.China Holds Interest Rates
The country’s benchmark interest rate remains at 3.10%. China has kept the interest rates unchanged for the sixth successive month, matching market expectations.
This development comes on the back of resilient first-quarter economic growth data.This steady growth may have reduced the urgency for immediate monetary easing.Meanwhile, in light of the ongoing trade war with the United States, markets are looking towards the government for more fiscal stimulus.Also Read: South Korea’s early trade data shows exports shrank after tariffsPreviously, the CCP-led government had doled out stimulus to jump-start the economy, which has been in a major slump of late.The China-US trade war is only expected to intensify further.When we look at China’s numbers, the country’s gross domestic product (GDP) grew 5.4% in the first quarter, beating expectations.Chinese Markets Look For Stimulus The markets, however, fear a sharp decline in the year ahead as the US tariffs and their claws leave a greater wound in China’s progress.When it comes to the indices in the realm of the Chinese influence, the Hong Kong-based Hang Seng closed with major gains of 338.16 points or 1.61%, closing at 21,395.14 points at the end of the day’s trade on Monday.When it comes to the CSI 300 index, another major index, the index also closed in green with gains of 12.36 points or 0.33 per cent, closing at 3,784.88.Also Read: Trump’s economic approval rating plumbs new depths: CNBC poll(Edited by : Juviraj Anchil)
