PBoC steps in with rate cuts
Cuts to benchmark rates and reserve requirements
The People's Bank of China (PBoC) intervened to support the crisis-hit Chinese economy today (August 25), cutting its benchmark rates and lowering reserve requirements.
The central bank cut its benchmark one-year lending and deposit rates by 25 basis points each, to 4.6% and 1.75% respectively. It will also reduce reserve requirements by 50bp from September 6, saying in a statement this was designed to maintain "adequate liquidity" in the banking system.
The move came against the backdrop of
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