2023-09-01 17:15:39
With our correspondent in Beijing,Stephane Lagarde
For the first time this year, the Chinese central bank comes out of the woodwork to try to ease the pressure on the yuan. The amount of foreign currency that Chinese banks must hold in reserve drops from 6% to 4%, while the offshore yuan has fallen 6% against the dollar since April.
This restoration of confidence also requires a boost in consumption. Tax relief should double on child care and education costs which represent a very large budget for Chinese families.
According to the statement from the State Council on Thursday, tax relief for elderly care will also increase.
And then, finally, support for the real estate market. Down payments for mortgage loans will be reduced to 20% for a first purchase, to 30 for a second. Also lower interest rates for real estate loans in progress on a first acquisition. A reduction in access to property, which should enable the household to consume more.
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