China cuts interest rates…again
26 October 2015 Shanghai
Image: Shutterstock
The People’s Bank of China (PBC) has cut its one-year benchmark interest rate by 0.25 percent to 4.35 percent.
The PBC also cut rate of yen it requires Chinese banks to hold.
The one-year benchmark deposit rate was lowered by 0.25 percent to 1.5 percent.
The change came into Saturday 26 October, but has so far failed to significantly encourage investors, according to reports.
The Chinese authorities are relying on a more liberal monetary policy to improve annual growth forecasts that have recently slipped from the 7 percent growth target.
Market analysts are predicting that cash released from these policy changes is likely to be between RMB 600 billion ($279 billion) and RMB 700 billion ($325 billion).
The move marks the sixth time China has revised its interest rates in less than a year.
The PBC also cut rate of yen it requires Chinese banks to hold.
The one-year benchmark deposit rate was lowered by 0.25 percent to 1.5 percent.
The change came into Saturday 26 October, but has so far failed to significantly encourage investors, according to reports.
The Chinese authorities are relying on a more liberal monetary policy to improve annual growth forecasts that have recently slipped from the 7 percent growth target.
Market analysts are predicting that cash released from these policy changes is likely to be between RMB 600 billion ($279 billion) and RMB 700 billion ($325 billion).
The move marks the sixth time China has revised its interest rates in less than a year.
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