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China cuts interest rates for sixth time in a year


China cuts interest rates for sixth time in a year

China’s central bank has cut interest rates and lowered the amount of cash banks must hold as reserves, as well as freeing up deposit rates.

Earlier this week the world’s second largest economy reported its slowest quarterly economic growth since the global financial crisis.

The sixth rate cut since last November is an attempt to cushion the slowdown: an easing of monetary policy in the face of deflationary pressures.

The People’s Bank of China (PBOC) said it was in line with the economic situation and would help support the real economy.

It added that low inflation overall allowed some room for the rate cut, and conditions were mature for the removal of a ceiling on deposit rates.

The government remains committed to its growth target of seven percent for 2015.

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