World Economy

China Cuts Interest Rates

China Cuts Interest RatesChina Cuts Interest Rates

China’s central bank cut its benchmark interest rate on Sunday for the third time since November, as economic growth cools to levels not seen since the global financial crisis, Reuters reported. The People’s Bank of China (PBOC) lowered its benchmark lending rate by 25 basis points (bps) to 5.1%, and its one-year benchmark deposit rates by the same amount to 2.25%, adding that the reductions would be effective from May 11. The central bank said in a statement on its website that the move would support the healthy development of the economy. Economists had said it was not a matter of if, but when China eased policy again after economic growth in the first quarter cooled to 7%, the slowest pace since 2009. Some market watchers had even said the central bank was risking falling behind the curve in responding to rapidly deteriorating conditions. Initial indicators and industry surveys for April released had pointed to a further loss of momentum heading into the second quarter.