China Financial Daily

The central bank lowered deposit and lending interest rates by 0.27%, the deposit reserve rate by 0.5 percent

To implement the appropriate monetary policy, People’s Bank of China decided to drop 0.27% in both one-year deposits and lending benchmark rates from December 23,2008, and others adjusted accordingly. Meanwhile, Thay also reduced refinancing and rediscount rates. From December 25, 2008, deposit reserve rate for financial institutions is been cut down by 0.5%.

 The chinese central bank cuts down two rates to prepare for the future

People’s Bank of China announced on 22,that one-year deposit and lending benchmark rate will go down 0.27% from December 23.Meanwhile,deposit reserve rate for financial institutions will be cut down 0.5 point. This the third time in china to low down both benchmark rate and deserve rate, the fifth time of the year to cut the rate,the fourth to low down the deposit reserve rate.
What’s more,last time when the central bank adjusted double-rate is less than one month ago.They said, it is to implement a apropriate monetary policy.

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