China’s central bank cuts rates for sixth time since November
China’s central bank cut interest rates for the sixth time since November on Friday, and it again lowered the amount of cash that banks must hold as reserves in another attempt to jumpstart a slowing economy.
China’s monetary policy easing is at its most aggressive since the 2008/09 global financial crisis, underscoring concerns within Beijing about the health of the world’s second-largest economy.
The People’s Bank of China (PBOC) said on its website that it was lowering the one-year benchmark bank lending rate by 25 basis points to 4.35 percent, effective from Oct. 24.
“The People’s Bank has delivered another jolt of stimulus,” analysts at Capital Economics said in a note to clients, but added that they were “still waiting for clear evidence of an economic turnaround”.
“We are retaining our forecast that benchmark rates and the reserve requirement ratio will both be cut once more before the end of the year, with a further move in both early in 2016.”