China’s central bank unexpectedly lowered interest rates and reserve ratio on Friday, which was the sixth reduction since November last year as economic growth slows.
The People’s Bank of China cut the one-year lending rate and deposit rate by a quarter-point to 4.35 percent and 1.5 percent, respectively. The new rates will take effect on Saturday.
Previously, the bank lowered the interest rates in August by 25 basis points.
The renminbi deposit reserve ratio was cut by 50 basis points. In a statement on its website, the PBoC said the reduction was to maintain reasonably adequate liquidity in the banking system and to guide steady moderate growth of money and credit.
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