Bloomberg reported that China’s central bank cut interest rates for the fifth time since November and lowered the amount of cash banks must set aside, stepping up efforts to stem the biggest stock market rout since 1996 and a deepening economic slowdown.
Bloomberg said the one-year lending rate will drop by 25 basis points to 4.6% and the one-year deposit rate will fall by 25 basis points to 1.75%.
Bloomberg noted that before today’s move, central bank Governor Zhou Xiaochuan had already this year lowered the required reserve ratio twice, with an additional move targeted to certain banks. Officials are also acting to boost lending including at the country’s policy banks, Bloomberg said.
Access the full Bloomberg report here.