China Raises World's Concern By Reducing Interest Rate

Asian country China has increased the world's concern by reducing interest rates during this period of inflation, but the dollar seems to be benefiting from this move in China. At present, the US currency dollar is getting the direct benefit of the increasing economic difficulties in China. All the new figures related to China's economy have been disappointing. In view of this, China has cut its interest rate.

According to analysts, this move of China has surprised the operators of the international market. At a time when the trend in the whole world is to increase the interest rate, China has taken the opposite step. New data on industrial production, retail sales, and fixed-asset investment in China were released on Monday. All these figures were below expectation. This indicated that the crisis in the Chinese economy was increasing. With this news, the fear of recession already looming around the world has intensified. Meanwhile, the Central Bank of China - the People's Bank of China has announced a cut in the interest rate. If experts are to be believed, then China is paying an expensive price for the zero Kovid policy. Cases of corona infection are still coming to the fore in the country. In those places, the Chinese authorities impose strict restrictions. It has an impact on economic activities. This has a clear impact on industrial production, retail sales, and capital investment.