Trending: Investing in Bitcoin / 5 reasons to invest in Amazon / Investing in the Metaverse
Wednesday, January 25, 2023
INVESTOR TIMES
  • Home
  • News
    Bets increase on a soft landing in the U.S

    Bets increase on a soft landing in the U.S

    69% of investors believe metaverse entertainment will change social lifestyles

    69% of investors believe metaverse entertainment will change social lifestyles

    European oil companies want to follow in Chevron’s footsteps to operate in Venezuela

    European oil companies want to follow in Chevron’s footsteps to operate in Venezuela

    Amgen buys Horizon Therapeutics for US$ 25 billion

    Amgen buys Horizon Therapeutics for US$ 25 billion

    Europe prepares law to make airlines that pollute more pay higher costs

    Europe prepares law to make airlines that pollute more pay higher costs

    Why are Asian investors selling their tech stocks?

    Why are Asian investors selling their tech stocks?

    Here’s what the economy and markets will look in 2023, according to JP Morgan

    Here’s what the economy and markets will look in 2023, according to JP Morgan

    Are technology stocks coming to the end of their reign?

    Are technology stocks coming to the end of their reign?

    Amazon fined millions for manipulating algorithms in its favor

    Amazon fined millions for manipulating algorithms in its favor

  • Markets
    Bets increase on a soft landing in the U.S

    Bets increase on a soft landing in the U.S

    What are CFDs and what are their advantages?

    Getting started with CFD trading

    Goldman Sachs lands with more strength at Santander and BBVA

    Goldman Sachs lands with more strength at Santander and BBVA

    With inflation in recession, what stocks should you consider?

    With inflation in recession, what stocks should you consider?

    Should payment for order flow be maintained in the stock market?

    Should payment for order flow be maintained in the stock market?

    Why are Asian investors selling their tech stocks?

    Why are Asian investors selling their tech stocks?

    Here’s what the economy and markets will look in 2023, according to JP Morgan

    Here’s what the economy and markets will look in 2023, according to JP Morgan

    Are technology stocks coming to the end of their reign?

    Are technology stocks coming to the end of their reign?

    Inflation is starting to ease but not enough

    Inflation is starting to ease but not enough

  • Investing
    Two biotech stocks that could explode soon

    Two biotech stocks that could explode soon

    Ideas for investing in the electric vehicle industry

    Ideas for investing in the electric vehicle industry

    Mercado Libre could be one of the best investments for the long term

    Mercado Libre could be one of the best investments for the long term

    Three cheap tech stocks for 2023

    Three cheap tech stocks for 2023

    Where to invest in 2023? These are the most likely trends

    Where to invest in 2023? These are the most likely trends

    Will Ford shares be profitable in 2023?

    Will Ford shares be profitable in 2023?

    Some interesting options for investing in leisure and travel companies

    Some interesting options for investing in leisure and travel companies

    Plug Power’s commitment to green hydrogen

    Plug Power’s commitment to green hydrogen

    Investing in Auto Trader: vehicle sales at a turning point

    Investing in Auto Trader: vehicle sales at a turning point

  • Technology
    Banning TikTok in the U.S. could benefit Meta

    Banning TikTok in the U.S. could benefit Meta

    Microsoft leads the ranking of the best-managed companies in 2022

    Microsoft leads the ranking of the best-managed companies in 2022

    Apple: consequences of the Foxconn conflict will continue until 2023

    Apple: consequences of the Foxconn conflict will continue until 2023

    5 must-have skills to get a job in 2023

    5 must-have skills to get a job in 2023

    UK changes strategy on Internet content control

    UK changes strategy on Internet content control

    EU organized a party in the metaverse and nobody attended

    EU organized a party in the metaverse and nobody attended

    The metaverse companies with the highest revenues in 2022

    The metaverse companies with the highest revenues in 2022

    Electric vehicles: China aims to boost its dominance

    Electric vehicles: China aims to boost its dominance

    Nintendo sells 10 million Switch in 3 days and its shares rise

    Nintendo sells 10 million Switch in 3 days and its shares rise

  • CryptocurrenciesTRENDING
    69% of investors believe metaverse entertainment will change social lifestyles

    69% of investors believe metaverse entertainment will change social lifestyles

    Bitcoin falls after Fed decision to raise interest rates by 0.50%

    Bitcoin falls after Fed decision to raise interest rates by 0.50%

    The future of cryptocurrencies, according to Larry Fink

    The future of cryptocurrencies, according to Larry Fink

    How Much Bitcoin Should You Buy: 5 Factors to Consider in 2023

    How Much Bitcoin Should You Buy: 5 Factors to Consider in 2023

    Between two extremes: what will the price of Bitcoin be in 2023?

    Between two extremes: what will the price of Bitcoin be in 2023?

    FTX crash spreads and affects BlockFi

    FTX crash spreads and affects BlockFi

    EU organized a party in the metaverse and nobody attended

    EU organized a party in the metaverse and nobody attended

    Why does The WSJ continue to question Tether’s financial health?

    Why does The WSJ continue to question Tether’s financial health?

    Brazilian Congress approves bill to regulate cryptocurrencies

    Brazilian Congress approves bill to regulate cryptocurrencies

  • Home
  • News
    Bets increase on a soft landing in the U.S

    Bets increase on a soft landing in the U.S

    69% of investors believe metaverse entertainment will change social lifestyles

    69% of investors believe metaverse entertainment will change social lifestyles

    European oil companies want to follow in Chevron’s footsteps to operate in Venezuela

    European oil companies want to follow in Chevron’s footsteps to operate in Venezuela

    Amgen buys Horizon Therapeutics for US$ 25 billion

    Amgen buys Horizon Therapeutics for US$ 25 billion

    Europe prepares law to make airlines that pollute more pay higher costs

    Europe prepares law to make airlines that pollute more pay higher costs

    Why are Asian investors selling their tech stocks?

    Why are Asian investors selling their tech stocks?

    Here’s what the economy and markets will look in 2023, according to JP Morgan

    Here’s what the economy and markets will look in 2023, according to JP Morgan

    Are technology stocks coming to the end of their reign?

    Are technology stocks coming to the end of their reign?

    Amazon fined millions for manipulating algorithms in its favor

    Amazon fined millions for manipulating algorithms in its favor

  • Markets
    Bets increase on a soft landing in the U.S

    Bets increase on a soft landing in the U.S

    What are CFDs and what are their advantages?

    Getting started with CFD trading

    Goldman Sachs lands with more strength at Santander and BBVA

    Goldman Sachs lands with more strength at Santander and BBVA

    With inflation in recession, what stocks should you consider?

    With inflation in recession, what stocks should you consider?

    Should payment for order flow be maintained in the stock market?

    Should payment for order flow be maintained in the stock market?

    Why are Asian investors selling their tech stocks?

    Why are Asian investors selling their tech stocks?

    Here’s what the economy and markets will look in 2023, according to JP Morgan

    Here’s what the economy and markets will look in 2023, according to JP Morgan

    Are technology stocks coming to the end of their reign?

    Are technology stocks coming to the end of their reign?

    Inflation is starting to ease but not enough

    Inflation is starting to ease but not enough

  • Investing
    Two biotech stocks that could explode soon

    Two biotech stocks that could explode soon

    Ideas for investing in the electric vehicle industry

    Ideas for investing in the electric vehicle industry

    Mercado Libre could be one of the best investments for the long term

    Mercado Libre could be one of the best investments for the long term

    Three cheap tech stocks for 2023

    Three cheap tech stocks for 2023

    Where to invest in 2023? These are the most likely trends

    Where to invest in 2023? These are the most likely trends

    Will Ford shares be profitable in 2023?

    Will Ford shares be profitable in 2023?

    Some interesting options for investing in leisure and travel companies

    Some interesting options for investing in leisure and travel companies

    Plug Power’s commitment to green hydrogen

    Plug Power’s commitment to green hydrogen

    Investing in Auto Trader: vehicle sales at a turning point

    Investing in Auto Trader: vehicle sales at a turning point

  • Technology
    Banning TikTok in the U.S. could benefit Meta

    Banning TikTok in the U.S. could benefit Meta

    Microsoft leads the ranking of the best-managed companies in 2022

    Microsoft leads the ranking of the best-managed companies in 2022

    Apple: consequences of the Foxconn conflict will continue until 2023

    Apple: consequences of the Foxconn conflict will continue until 2023

    5 must-have skills to get a job in 2023

    5 must-have skills to get a job in 2023

    UK changes strategy on Internet content control

    UK changes strategy on Internet content control

    EU organized a party in the metaverse and nobody attended

    EU organized a party in the metaverse and nobody attended

    The metaverse companies with the highest revenues in 2022

    The metaverse companies with the highest revenues in 2022

    Electric vehicles: China aims to boost its dominance

    Electric vehicles: China aims to boost its dominance

    Nintendo sells 10 million Switch in 3 days and its shares rise

    Nintendo sells 10 million Switch in 3 days and its shares rise

  • CryptocurrenciesTRENDING
    69% of investors believe metaverse entertainment will change social lifestyles

    69% of investors believe metaverse entertainment will change social lifestyles

    Bitcoin falls after Fed decision to raise interest rates by 0.50%

    Bitcoin falls after Fed decision to raise interest rates by 0.50%

    The future of cryptocurrencies, according to Larry Fink

    The future of cryptocurrencies, according to Larry Fink

    How Much Bitcoin Should You Buy: 5 Factors to Consider in 2023

    How Much Bitcoin Should You Buy: 5 Factors to Consider in 2023

    Between two extremes: what will the price of Bitcoin be in 2023?

    Between two extremes: what will the price of Bitcoin be in 2023?

    FTX crash spreads and affects BlockFi

    FTX crash spreads and affects BlockFi

    EU organized a party in the metaverse and nobody attended

    EU organized a party in the metaverse and nobody attended

    Why does The WSJ continue to question Tether’s financial health?

    Why does The WSJ continue to question Tether’s financial health?

    Brazilian Congress approves bill to regulate cryptocurrencies

    Brazilian Congress approves bill to regulate cryptocurrencies

INVESTOR TIMES
Home Markets

People’s Bank of China cuts interest rates unexpectedly

The move follows the release of disappointing data on the Asian giant's economy

Eric Nesich by Eric Nesich
8/15/2022 - 13:43
in Markets, News
Reading Time: 2 mins read
Share on FacebookShare on TwitterShare on LinkedIn
  • China’s central bank cut interest rates by 10 points.
  • Massive blockades of cities by Covid-19 damaged the country’s economy.
  • The slowdown is felt in the industrial sector and retail trade.

In a move not expected by the markets, China’s central bank cut interest rates by 10 basis points in a move to accelerate demand. Economic data showed that the economy slowed in July. While the rate cut comes as a surprise, the slowdown in the economy is not due to the multiple blockades, encirclements and COVID-19 restrictions imposed by the Chinese government on its population.

Industrial and retail activity have been the hardest hit by the restrictions. Industrial production rose 3.8% year-on-year in July, down from 3.9% in June. Retail sales were up 2.7%. A number below expectations and even lower than June’s 3.1%.

“The July data suggest that the post-confinement recovery lost steam as the one-time momentum of the reopening faded. Mortgage boycotts triggered renewed deterioration in the property sector,” said Julian Evans-Pritchard, senior China economist at Capital Economics.

“The People’s Bank of China is already responding to these headwinds by increasing support. But given that credit growth has proven less sensitive than in the past to policy easing, this will probably not be enough to prevent further economic weakness” remarked the economist.

After the data was released, the yuan weakened against the dollar and stocks opened lower in the Chinese market. Although the economy has not yet fallen into recession, it seems to be heading towards it in the future. Beijing’s policy of encircling the population in the name of COVID-19 is leading to that front, especially with the closure of Shanghai’s commercial center, a recession in the real estate market and sharply lower consumer spending.

Shanghai is not the only city suffering from state blockades due to the coronavirus. Other major industrial and tourism cities are also imposing blockade orders on their residents. According to the Chinese state, these measures are taken to combat the Omicron variant. Real estate investment fell 12.3% last month, the most this year, while real estate sales fell 28.9%.

The rate cut reported today will likely lead to a corresponding reduction in benchmark lending rates next week. Another concern is capital outflows from banks. The U.S. Federal Reserve and other global economies raise rates aggressively to combat inflation. So investors are tempted to take their savings elsewhere where they can make them yield more.

“Very sluggish credit demand in July due to weak activity growth, a further deterioration in real estate indicators and lower-than-expected CPI inflation could have contributed to the central bank’s move,” Goldman Sachs analysts said. “Going forward, whether the central bank will cut interest rates again could depend on the data in our view.”

The Chinese economy is expected to miss the official growth target during 2022. This target was 5.5% but the numbers show to be far from that goal.

“China’s growth in the second half will be significantly hampered by its zero COVID strategy, deterioration in the property sector and a likely slowdown in export growth,” Nomura analysts said. “Beijing’s policy support may be too little, too late and too inefficient”, they concluded.

Tags: Central Bank of ChinaChina economyCovid-19

Related articles

Bets increase on a soft landing in the U.S
Markets

Bets increase on a soft landing in the U.S

by Alejandro Gil
— January 24, 2023
69% of investors believe metaverse entertainment will change social lifestyles
Cryptocurrencies

69% of investors believe metaverse entertainment will change social lifestyles

by Santiago Contreras
— January 24, 2023
What are CFDs and what are their advantages?
Markets

Getting started with CFD trading

by David Romero
— January 24, 2023
European oil companies want to follow in Chevron’s footsteps to operate in Venezuela
Companies

European oil companies want to follow in Chevron’s footsteps to operate in Venezuela

by Alejandro Gil
— December 17, 2022
Goldman Sachs lands with more strength at Santander and BBVA
Markets

Goldman Sachs lands with more strength at Santander and BBVA

by Pablo Petovel
— December 17, 2022

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Last published articles

Bets increase on a soft landing in the U.S
Markets

Bets increase on a soft landing in the U.S

by Alejandro Gil
— January 24, 2023
69% of investors believe metaverse entertainment will change social lifestyles

69% of investors believe metaverse entertainment will change social lifestyles

by Santiago Contreras
  January 24, 2023

What are CFDs and what are their advantages?

Getting started with CFD trading

by David Romero
  January 24, 2023

European oil companies want to follow in Chevron’s footsteps to operate in Venezuela

European oil companies want to follow in Chevron’s footsteps to operate in Venezuela

by Alejandro Gil
  December 17, 2022

Goldman Sachs lands with more strength at Santander and BBVA

Goldman Sachs lands with more strength at Santander and BBVA

by Pablo Petovel
  December 17, 2022

Facebook Twitter LinkedIn Telegram RSS

ABOUT INVESTOR TIMES

INVESTOR TIMES is an independent publication of economic, finance and investment content, owned and operated by Altas Ventures.

MORE ABOUT US

  • Our team
  • Work with us
  • Advertise on IT
  • Contact
  • Corporate information
  • Terms of Use
  • Cookies Policy
  • Privacy Policy

INTERNATIONAL EDITIONS

Investor Times in English

Investor Times en Français

Investor Times in Deutsch

Investor Times in Italiano

Investor Times em Português

Investor Times po Polsku

Investor Times на русском языке

El País Financiero (edición en Español)

© ATLAS VENTURES SLU, all rights reserved. Any information contained in INVESTOR TIMES is for educational and/or informational purposes only, it is not financial and/or investment advice. INVESTOR TIMES may obtain economic retribution by recommending services or products of third parties. INVESTOR TIMES does not accept, nor will it accept in the future, subsidies or funds from Governments, political parties or public institutions.

No Result
View All Result
  • Home
  • News
  • Markets
  • Investing
  • Cryptocurrencies
  • Technology

  •  EXCLUSIVE  3 Russian men are the real perpetrators behind Juicy Fields, says Glanse

     NEW  Compound Interest Calculator

     TRENDING 
    Investing in Bitcoin Investing in the Metaverse 5 reasons to invest in Amazon

© ATLAS VENTURES, all rights reserved.