China Cuts Interest Rates
Last week, it was the Fed. This week it's China.
For the fifth time in three months, China lowered its one-year lending rate, this time to 5.31 percent -- a .27 percent cut. Deposit rates were cut by the same amount, to 2.25 percent.
Analysts were expecting deeper cuts. However, media reports out of China indicate that the country is planning a second stimulus package to jump-start consumer spending. China's exports are also hurting because of less U.S. demand.
“Monetary policy is now playing a supportive role to the main show in town: fiscal stimulus,” Stephen Green, head of China research at Standard Chartered Bank Plc, told Bloomberg News service.
-- Michael S. Rosenwald
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