China cuts the interest rates again!

China cuts the interest rates again!
Dec 23, 2008 01:04
DREAMLIFE Points: Join Date: Sep 5, 2007 Status: offline	The People's Bank of China announced to cut the interest rates again yesterday. The one-year lending rate would be cut by 27 basis points to 5.31 percent and the one-year deposit rate would also be lowered by 27 basis points to 2.25 percent. At the same time, the reserve ratio would be cut by 50 points too. This move suggests that China is making efforts to stop the economic downturn. As for the next year's economic growth, China says it will do all necessary things to ensure 8% eonomic growth. However, the foreign financial institutions seem not to be optimistic. The Royal Bank of Scotland predicts that the growth for next whole year will be 5 percent.

Dec 23, 2008 01:04

DREAMLIFE
Points:
Join Date: Sep 5, 2007
Status: offline

The People's Bank of China announced to cut the interest rates again yesterday. The one-year lending rate would be cut by 27 basis points to 5.31 percent and the one-year deposit rate would also be lowered by 27 basis points to 2.25 percent. At the same time, the reserve ratio would be cut by 50 points too.

This move suggests that China is making efforts to stop the economic downturn. As for the next year's economic growth, China says it will do all necessary things to ensure 8% eonomic growth.

However, the foreign financial institutions seem not to be optimistic. The Royal Bank of Scotland predicts that the growth for next whole year will be 5 percent.

Dec 23, 2008 13:29	#1
CARLOS Points: Join Date: Sep 10, 2007 Status: Offline	China is happy because it can talk about growth. About the rest of the world will see growth perhaps 2011. Carlos

Dec 23, 2008 18:54	#2
JIMMYB Points: Join Date: Feb 7, 2007 Status: Offline	Just in 3 months, China has cut the interest rates six times. This is not a good sign. By the way, the unemployment situation in China is harsh. Many college graduates can't find jobs.

Dec 23, 2008 20:24	#3
COOLSPRINGS Points: Join Date: May 19, 2008 Status: Offline	Bank of China in North America branch offer mortgage rate just 1.5% 3 yr fixed term for staff members and has pretty active overnight interbank loan trading, which means china has lots lots of cash and its economy won't be hurt that much like USA during the next 2-5 downturn years.

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