The People’s Bank of China cut the one-year lending rate by 25 basis points to 5.35 percent on February 28th amid rising deflationary pressure, low growth and declining property prices.
The one-year benchmark deposit rate was also cut by 25 basis points to 2.5 percent.
China's annual inflation rate slowed to 0.8 percent in January, from 1.5 percent in the previous month and touching the lowest level since November of 2009. Producer prices have been falling for the last three years, the longest period on record.
Chinaese economy grew at five year low of 7.3 percent in the third and fourth quarter of 2014. Full-year economic growth in 2014 reached 7.4 percent, undershooting the government's target of 7.5 percent and marking the weakest expansion in 24 years.
Average prices of new homes fell 3.8 percent yoy in February, compared with the 3.1 percent decline in January and the 2.7 percent drop in December, according to China Real Estate Index System.
2/28/2015 11:40:39 PM