China cuts the interest rates by 108 basis points!
Nov 27, 2008 03:10
  • KEVIN0518
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To prevent economic slump and possible deflation, China declared to cut the interest rates by 108 basis point yesterday. The decrease is the sharpest in recent 10 years. The government also the reserve ratio greatly to support the “massive” fiscal spending programme that officials are trying to put in place.

Cutting the interest rates by 108 basis points is regarded as the most aggressive policy in a decade. It indicates that Chinese economy is cooling down more quickly than had been expected previously. The World Bank had reduced their forecast for the growth of Chinese economy to 7.5 percent, the lowest level since 1990. It is expected that China will lower the interest rates by 200 or 250 basis points in next 6 months.
Dec 1, 2008 04:02
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Another news: The Chinese government encourages the farmers to consume more. From next year, the government will subsidize the farmers to buy the electrical appliance, such as washing machine, TV and cellphone. The local goverments will burden about 30 percent of the costs for those electrical appliance. This is another way to expand the domestic demand.
Sep 25, 2009 09:27
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A definite great read....Barbra Scurley
Oct 3, 2009 20:17
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What exactly do you find such great reading Barbra?
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