China’s central bank cut interest rates on Saturday, just days before the annual meeting of the country’s parliament, in the latest effort to support the world’s second-largest economy as its momentum slows and deflation risks rise.
The central bank said the 25 basis point cut in the benchmark interest rate to 5.35 per cent – its second cut in just over three months – and a 25 basis point cut in the benchmark saving rate to 2.5 per cent would be effective from Sunday.
“The focus of the interest rate cut is to keep real interest rate levels suitable for fundamental trends in economic growth, prices and employment,” the People’s Bank of China (PBOC) said in a statement on its website.
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(Reuters) China cuts rates again in face of weak demand, deflation risk
China’s central bank cut interest rates on Saturday, just days before the annual meeting of the country’s parliament, in the latest effort to support the world’s second-largest economy as its momentum slows and deflation risks rise.
The central bank said the 25 basis point cut in the benchmark interest rate to 5.35 per cent – its second cut in just over three months – and a 25 basis point cut in the benchmark saving rate to 2.5 per cent would be effective from Sunday.
“The focus of the interest rate cut is to keep real interest rate levels suitable for fundamental trends in economic growth, prices and employment,” the People’s Bank of China (PBOC) said in a statement on its website.
Read it all.