Beijing set to cut rates as deflation fears return

CHINA - China is set to cut interest rates today for the first time in more than two-and-a-half years to combat a return of the deflationary pressures Beijing fought so hard to banish during the Asian financial crisis.

The People's Bank of China, the central bank, announced yesterday that the one-year lending rate on renminbi loans is to be cut today by more than 50 basis points from 5.85 per cent to 5.31 per cent. The one-year deposit rate for renminbi savings has been cut by more than 25 basis

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