China cuts interest rates to fight economic impact of zero-Covid policy

people wearing face masks outside the Chinese central bank China's central bank has cut interest rates in a bid to fight the economic impact of its “zero-Covid” policy. The People's Bank of China cut the benchmark one-year loan prime rate to 3.8pc from 3.85pc, the first time it has reduced rates since April 2020 when the pandemic peaked in the country. The benchmark rate influences corporate and household loans, with the cut aimed at lowering the cost of borrowing to stimulate China's economy. Despite rapidly recovering from the initial hit from Covid-19, the Chinese economy has shown signs of a…