China Cuts Interest Rate to 6%

China's central bank lowered interest rates for the second time in less than a month to bolster an economy widely expected to record its sixth successive slide in growth in the second quarter.

The central bank also took another step in liberalising interest rates by lowering the floor for lending rates to 70 percent of benchmark rates from 80 percent previously, making loans more affordable for borrowers.

China has lowered the amount of cash banks must keep in reserve in three 50-basis point steps since November, freeing up an estimated 1.2 trillion yuan (£122m) for fresh lending. The last cut was in May.

China Cuts Interest Rate to 6%, The People's Bank of China
7/9/2012 12:02:51 PM