(Finance) – The Chinese central bank has cut the medium-term rates (MLF) at 1 year by 10 basis points to 2.65% from 2.75%. It’s about the first reduction since August 2022after having lowered the 7-day repo rate by 10 basis points to 1.9% in recent days, in an attempt by the government to support a recovery in the country’s economy, in the light of various macroeconomic data which disappointed expectations in the last weeks.
Record youth unemployment in May
Unemployment marks a new record in China among young people: the figure jumped to 20.8% in May, according to data from the National Bureau of Statistics. Overall unemployment remains at 5.2%, unchanged from April.
Slowdown in retail sales
China’s retail sales grew less than expected in May. The data recorded an increase of 12.7% on an annual basis, compared to the +13.6% expected by the consensus. In April, consumption had recorded an increase of 18.4%.
Industrial production disappoints estimates
The activity of Chinese factories recorded a growth of 3.5% on an annual basis in May, compared to the +3.6% estimated by analysts. Production slows down compared to the previous month when the growth rate was equal to +5.6%.
(Photo: Natalie Steyerová)