|China’s Central Bank Cuts Interest Rates|
The People's Bank of China announced interest rate cuts, rallying indexes on the Shanghai and Shenzhen exchanges as trading began early on Nov.24.
The country's central bank is slashing benchmark interest rates for the first time in more than 2 years. It trimmed the benchmark lending rate by 40-basis points to 5.6-percent, while the one-year deposit rate was cut by 25-basis points from 3-percent to 2.75-percent.
Despite the cut in the deposit rate, the PBOC did raise the ceiling for deposit rates to 1.2 times the benchmark level from 1.1 times previously.
A PBOC statement said the purpose of cutting the deposit and lending rate is to scale down actual interest rates and lower financing costs for many enterprises.
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Published on our website on Nov.24, 2014