China Cuts Medium-Term Rate to Soften Coronavirus Hit to Economy

China Cuts Medium-Term Rate to Soften Coronavirus Hit to Economy
A man walks past the headquarters of the People's Bank of China (PBOC), the central bank, in Beijing on Sept. 28, 2018. Jason Lee/Reuters
Reuters
Updated:

SHANGHAI—China’s central bank cut the interest rate on its medium-term lending on Feb. 17 as policymakers sought to ease the drag to the businesses from a coronavirus outbreak that has severely disrupted activity.

The move is expected to pave the way for a reduction in the country’s benchmark loan prime rate (LPR), which will be announced on Thursday, to lower borrowing costs and ease financial strains on companies hit by the virus outbreak.