Central bank announces rate cut to bolster real economy
Updated: 2015-08-25 18:13
(chinadaily.com.cn)
|
||||||||
The Chinese central bank has announced a fifth cut on interest rates since November of last year, along with lowering the requirement reserve ratio (RRR), as the country aims to revive the real economy.
The People's Bank of China (PBOC) said on its website that it will lower its benchmark one-year lending rate by 25 basis points to 4.6 percent from Wednesday. The benchmark deposit rate will be cut by the same amount to 1.75 percent.
The RRR, the minimum level of reserves banks must hold, will be lowered by 50 basis points.
The rate cut is intended to drive down financing costs to benefit small- and medium-sized enterprises and support the development of the real economy, according to the central bank.
In addition to five rate cuts since late November, the PBOC earlier removed its 75-percent loan-to-deposit ratio requirement to give banks more freedom to lend.
The cut came as the Purchasing Managers Index, a main gauge of manufacturing activities, fell to 47.1 in August, marking its lowest level since March 2009, according to a preliminary reading of the Caixin PMI.
The world's second-largest economy posted 7-percent growth year on year in the second quarter, unchanged from the first quarter and its lowest quarterly growth rate since 2009.
- Bull crushes bear in stock market statue
- Top 10 emerging cities on the Chinese mainland
- Jamaican Fraser-Pryce again becomes world champion
- Glowing in the night
- Mechanical horse dragon Long Ma performs in France
- Giant panda Bao Bao celebrates two-year birthday
- Across America over the week (Aug 14 - Aug 20)
- Stars in their eyes: leaders in love
Most Viewed
Editor's Picks
Seventh China-US strategic dialogue |
Premier Li embarks on Latin America visit |
What do we know about AIIB |
Full coverage of Boao Forum for Asia |
Annual legislative and political advisory sessions |
Spring Festival trends reflect a changing China |
Today's Top News
China share plunge smacks world markets
30 heads of state to attend China's Victory Day celebrations
ROK, DPRK agree to defuse tension
Tsinghua University crowned 'wealthiest' Chinese school
China equities collapse sparks global markets sell-off
Targets set for regional integration
China advocates practical cooperation between LatAm, East Asia
Giant panda gives birth at Washington's National Zoo
US Weekly
Geared to go |
The place to be |