People’s Bank Of China: Central bank cuts interest rate further

The PBoC has now cut interest rates four times since November

Afp June 28, 2015

BEIJING: China’s central bank said Saturday it would again reduce interest rates by 25 basis points, its fourth such cut since November as it tries to boost growth. The benchmark interest rate would be reduced to 4.85% and the deposit rate to 2% from Sunday, the People’s Bank of China (PBoC) said on its website. The PBoC also announced that it will cut the reserve requirement ratios (RRR) by 50 basis points for commercial banks serving rural areas, agriculture and small businesses. The PBoC has now cut interest rates four times since November and this year also reduced the amount of cash banks must keep in reserve three times, as well as using other measures to inject liquidity into the market. The bank said the latest moves were aimed at “stabilising growth” and “to further enhance the efficiency of monetary policy to (support) economic transformations’ and are similar to cuts made last month”.

Published in The Express Tribune, June 28th, 2015.

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