About Us   Jobs   Contact Us      


 
Google  

China Central Bank Cut Interest Rates by 1.08 Pct
    2008-11-26 17:14:03     Xinhua

Related: China Cuts Interest Rates, Reserve Requirement Ratio to Spur Growth

               Chinese Stocks Open Sharply Higher after Bigger-than-expected Interest Rate Cut

                Hong Kong Stocks Open Sharply Higher - Nov. 27

                China's GDP Growth Slowing to 8 Pct in Q4

               Chinese Shares up 1.05 Pct after Rate Cut

China's central bank slashes the lending and deposit rates by 1.08 percentage points as of Thursday in the latest strong effort to stimulate economy.

The People's Bank of China (POBC) said on Wednesday it will cut the benchmark one-year yuan lending rate to 5.58 percent from 6.66 percent and the one-year yuan deposit rate to 2.52 percent from 3.60 percent.

The cut was substantially larger than earlier three cuts, 0.27 percentage points each, since mid September. It was the largest cut since October 1997 when the PBOC cut the one-year borrowing cost by 1.44 percentage points to support growth to withstand the Asian Financial Crisis.

It was the third time the PBOC cut the deposit rate since early October and the largest cut since June 1999.

The PBOC also said that as of Dec. 5, it will lower the reserve requirement ratio by 1 percentage points at the large banks and by 2 percentage points at the smaller and medium-sized banks.

The large lenders include Industrial and Commercial Bank of China, Agricultural Bank of China, Bank of China, China Construction Bank, Bank of Communications and Postal Savings Bank of China.

The monetary easing was aimed at "ensuring ample liquidity in the banking system and promoting stable credit growth to make the monetary policy play an active role in supporting economic growth", the POBC said in a statement.

The strong move highlighted the government's determination to meet challenges and promote economic growth, Li Yang, head of the Institute of Finance and Banking at the Chinese Academy of Social Science, told Xinhua.

China's economy has slowed sharply due to faltering growth in exports and property investment. The gross domestic product expanded 9 percent annually in the third quarter, down from 10.4 percent in the first half and 11.9 percent last year.

October's economic data released mid the month showed the economy would see further slowdown. The annual industrial output grew 8.2 percent last month, the slowest pace in seven years.

 
Share

               
Recommend


CRIENGLISH.com claims the copyright of all material and information produced originally by our staff. No person, organization and/or company shall reproduce, disseminate or broadcast the content in any manner whatsoever without the express written permission of CRIENGLISH.com.

CRIENGLISH.com holds neither liability nor responsibility for materials attributed to any other source. Such information is provided as reportage and dissemination of information but does not necessarily reflect the opinion of or endorsement by CRI.

Also on our site
China | World
• Russian Natural Gas Supplies to Balkans Halted
• Three Israeli Soldiers Killed in Friendly Fire in Gaza
• Polanski's Lawyers Seek to Have Sex Case Dismissed
• Foreign Journalists still Not Allowed into Gaza
• US VP-elect Joe Biden to Visit Pakistan
• China Curbs Overseas Trips on Public Expense
Business | Sports | SciTech
• China Issues Long-awaited 3G Licenses
• Wahaha, Danone Start Trademark Arbitration
• GM Reports 31 Percent Sales Decline in U.S. Market
• Call for More Overseas Talents
• Bulgarian Figure Skating Champion Sentenced to 2.5 Years in Prison
• China's Mission to Mars Set for Take-off
Life | Showbiz
• A Seemingly Endless Scandal
• Asian Art Top Show Kicks off in Beijing
• Behind-the-Scene Photos of "Look for a Star"
• Universal Pictures Movies Set New B.O. Record in 2008
• Tan Dun's Deep Pool of talent
• Top 10 Shows in 2008 
Webcast  
• China Drive, Afternoon, 2009-01-07
• China Drive, Afternoon, 2009-01-06
• China Drive, Morning, 2009-01-06
• Official Property Declaration System
• India handed over evidence of Mumbai attacks to Pakistan
• EU delegation holds talks to push for a cease-fire in Gaza
• Mubarak Meets with EU Troika on Gaza Situation
• Bush says any Gaza ceasefire must stop Hamas rocket fire
 
View the Messages