Metals Rise After Chinese Banks Cut Rates To Aid Property Market

Iron ore and base metals rose after Chinese banks cut their benchmark lending rates, part of Beijing's efforts to ensure Asia’s largest economy meets growth targets for this year, Bloomberg News reported.

China’s top leadership had called for lower interest rates and stronger measures to aid the struggling property market, a key source of demand for metals like iron ore, copper, and zinc.

The reductions in two key rates at the biggest lenders were larger than economists had expected, following the central bank’s decision to cut its key policy rate in September.

China’s top leadership had called for lower interest rates and stronger measures to aid the struggling property market, a key source of demand for metals like iron ore, copper, and zinc.

Industrial commodities have experienced volatility in recent weeks as investors reacted to a series of Chinese government announcements aimed at supporting the economy and helping it reach the 5% growth target for this year.

Iron ore and copper initially surged in response to Beijing's increased efforts but later lost much of the gains due to doubts over their effectiveness.