China slash interest rates
November 27, 2008 · Filed Under Economic News
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In response to a slowing economy the People’s Bank of China have taken the dramatic step of cutting their interest rate by 108 basis points in an attempt to stimulate demand within the economy.
The rate cut is the biggest by the Chinese since 1997 when the People’s Bank of China cut rates by 144 basis points.
The rate cut has reduced the one year yuan lending rate to 5.58%.
The rate cuts in China are likely to be followed by the Reserve Bank of Australia next week as they attempt to stimulate domestic demand within Australia.
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