China’s Central Bank Slashes Key Interest Rate

Another marker for Beijing's tumbling economy—China's central bank slashed a key interest rate Tuesday. Dropping the rate on one-year loans to just 2.5 percent—that's 15 basis points. Besides that medium-term cut, the bank also cut one of its short-term lending rates by 10 basis points. The unexpected rate plunge comes as the biggest one since the start of the pandemic. Driven by attempts to stabilize the country's property market woes, slumped demand, and slowed consumer spending. But the rate cut comes with its own penalties, China's yuan sank to its lowest point since November on Tuesday. Further widening the gap with the U.S. dollar.