China Cuts Key Rate by 0.25%
The People's Bank of China cut its benchmark one-year lending rate by 25bps to 4.35 percent on October 23rd, 2015, aiming to bolster the economy. Policymakers also decided to lower reserve requirements for banks.
The decision comes after official data showed the economy expanded 6.9 percent year-on-year in the third quarter of 2015, better than market expectations, but the weakest growth rate since 2009.
The one-year deposit rate was also lowered by 25bps to 1.5 percent, effective from October 24th. The reserve requirement ratio for all commercial banks was cut by 50bps with an additional 50 bps reduction for some institutions.
It is the sixth rate cut since November last year, bringing the benchmark rate down by 165 bps to a fresh record low.
The government targets 2015 growth at 7 percent.
10/23/2015 12:47:32 PM