China cut borrowing costs for the first time since 2008 and
loosened controls on banks’ lending and deposit rates, stepping up efforts to
combat a deepening slowdown as Europe’s debt crisis threatens global growth,
Bloomberg writes.
The benchmark one-year lending rate will drop to 6.31
percent from 6.56 percent effective tomorrow, the People’s Bank of China said
on its website today. The one-year deposit rate will fall to 3.25 percent from
3.5 percent. Banks will get extra freedom to set the amounts they pay on
deposits and charge for loans in a move UBS AG calls a “milestone.”
European stocks and U.S. index futures rose as China’s move
added to an Australian rate cut this week and expressions of concern from
European and U.S. central bank officials that fanned expectations for more
stimulus. The announcement, two days before China is due to report inflation,
investment and output figures, may signal that the economy is weaker than the
government expected.
Wait…wait…there’s more at http://www.bloomberg.com/news/2012-06-07/china-cuts-interest-rates-for-first-time-since-2008.html
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