China cuts rates to lift virus-battered economy
China cut its key interest rate Thursday (February 20) to aid an economy battered by the coronavirus outbreak.
The loan prime rate - a new benchmark introduced last August - fell 10 basis points to 4.05%.
Analysts had widely expected the move, with all 51 polled by Reuters predicting it.
The cut is intended to lower borrowing costs for businesses struggling with a slump in trade.
But economists polled by Reuters forecast that Chinese growth will slump to 4.5% in the first quarter, from 6% in the previous three months.
Some see Q1 as low as 3%.
That leaves investors betting there's more monetary and fiscal stimulus to come.
Thursday's move was cheered by equity traders.
Shanghai's benchmark stock index closed over 1.8% higher following the news.
On currency markets, the Chinese yuan weakened to a more than two-month low.
