Saturday, June 27, 2015

The People Bank of China: Interest Rate Cuts and Lower Reserve Requirement Ratios

Breaking news from Beijing, China's central bank has announced the fourth recent round of interest cuts and lower reserve requirement ratios for small businesses, making small business owners and investors happier, as Beijing tries to shore up the country's sluggish economy.

As reported by Reuters, The People's Bank of China said Saturday that it would cut the rate on a one-year loan by commercial banks by 0.25 percentage point to 4.85 percent. The interest rate paid on a one-year deposit was lowered by 0.25 point to 2 percent.

As we knew it before, The People Bank of China Rates were cut on Nov. 22, March 1 and then May 11. The new rates take effect Sunday. And more effectively to market on Monday, The China central bank also says the reserve requirement ratios to small businesses would be lowered by 50 points, a move that would boost lending and more economic growth will increase, Economic growth has slowed in China, and its stock markets plunged Friday.

No comments:

Post a Comment