China Cuts Interest Rates… Again
CBJ — In an effort to kickstart a slowing economy, China has cut its interest rates for a sixth time this year.
The Chinese central bank has also increased the amount of money available for lending by reducing the amount banks are required to hold in reserve.
The bank said the benchmark rate on one-year loans will fall by 0.25% points to 4.35%, effective immediately. The benchmark rate for one-year bank deposits will be reduced by the same margin to 1.5%.
Economic growth in the latest quarter declined to a six-year low of 6.9%. At its peak several years ago, the world’s second-largest economy was growing at a rate of between 13% and 17%. The slowdown not only impacts China domestically, but also on the amount of imported products coming in from other countries, including Canada.