China cuts interest rates, CNN

CNN reports from New York that China’s central bank announced on June 7 its first rate cut (0.25%) since 2008 in an attempt to spur its slowing economy.

This shows the bank’s intention to further ease money supply as it already reduced on May 12 the amount of cash banks must hold in reserve to free up funds for lending and investment, but Chinese economy has continued to cool over the past month.

As China’s interest rate is much higher than Western countries (its one-year lending rate being 6.31% now), China has much more room to work with to stimulate its economy.

For details please visit CNN website at:

http://money.cnn.com/2012/06/07/news/economy/china-rate-cut/