Interest Rate Cut in China
Early Monday morning, the People’s Bank of China,
headed by Governor Pan Gong sheng, announced a reduction in the Loan Prime Rate (LPR).
Topic
Interest Rate
According to the statement issued, the bank lowered the one-year LPR by 10 basis points to 3.35%,
contrary to expectations of maintaining the previous level of 3.45%.
This move is part of the bank’s ongoing efforts to provide direct support for mortgage interest rates,
aiming to revive demand in the debt-laden sector and bolster economic growth.
The Dollar
US Dollar Falls After Biden’s Withdrawal
The US dollar fell on Monday at the start of the week’s trading against a basket of major and minor currencies.
This decline followed President Joe Biden’s decision to withdraw from the upcoming US presidential election.
This decision paved the way for another Democratic candidate to face Republican candidate Donald Trump
in the upcoming November election.
President Joe Biden also announced via X platform his full support for his Vice President Kamala Harris
as the Democratic Party’s candidate in the next presidential election.
Biden urged his supporters to donate to Harris’s campaign.
Gold
Gold Prices Rise
Global gold prices rose during Monday’s trading as the US dollar declined.
This decline followed President Joe Biden’s decision to withdraw from the 2024 presidential race.
Investors turned to bullion as a hedge against political uncertainty in the United States.
The weaker dollar also increased the appeal of gold to buyers holding other currencies.
With Biden’s withdrawal,
the path is cleared for another Democratic candidate to face Republican candidate Donald Trump
in the upcoming election.
Upon accepting his nomination from the Republican Party on Thursday,
Trump reiterated his promise to cut corporate taxes and interest rates.
Analysts expect a Trump presidency to lead to stricter trade relations,
potentially resulting in tariffs that could drive up prices.
Interest Rate Cut in China