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March 1 foreign media reports said, with the authorities' efforts to support the weak growth in China, China's central bank announced on February 28, the financial institution will deposit and lending rates by 25 basis points. Analysts say many due to weak economic indicators, the central bank's move is largely expected. This measure will take effect on March 1.
February 28, according to Agence France-Presse reported that Beijing announced last month that in 2014 China's GDP grew by 7.4%, which is the lowest level in 24 years.
People's Bank of China said in a statement that it will one-year benchmark deposit rate down to 2.5 percent, one-year benchmark lending rate down to 5.35% at its website.
The People's Bank said that one of the factors prompting it to take this measure is "historically low inflation."
Kay CIC International Macroeconomic Advisers, chief Asia economist Mark Williams cautioned that this latest move to cut interest rates "will mainly help larger enterprises."
Reuters reported on February 28, held in China on the eve of the annual meeting of the National People's Congress, the country's central bank cut interest rates on the same day implementation, which is the latest effort to support the world's second largest economy made. Here, the country's economic growth momentum slowed, increasing the risk of deflation.
The country's central bank announced that the benchmark lending rate by 25 basis points to 5.35 percent - which is more than three months to the second cut, deposit benchmark interest rate 25 basis points to 2.5 percent, the rate cut will begin March 1 effect.
People's Bank of China issued a statement on its website, said:. "The focus is to keep the real interest rate adjustments to adapt to changes in economic growth, interest rates, prices, employment and other fundamental trend, does not mean that monetary policy changes."
Reported, but the People's Bank of China in the description of the policy background when using a new argument. The country's central bank said the interest rate adjustment will be to create a "neutral moderate" monetary and financial environment.
February 28 issued the statement referred to the "real interest rates." This also implies that prices continued to decline is an important factor in the decision to cut interest rates.
Shanghai Retrospect SW Securities economist believes the first week after the Spring Festival show government wants to cut interest rates to boost business confidence. Deflation is the number one enemy, the only constant quantitative easing (rate cut RRR) in order to ease the vicious cycle of deflation.
World Conference Board economist in Beijing, said Bo Ande stimulate investment may not be the main goal of the rate cut. Many Chinese companies are currently heavy debt burden, allowing these companies to refinance at a lower interest rate is to put one of their pocket more cash option.
Reported that more than Minsheng Securities economist in the research book on the cuts made in response to the news, which wrote: "Even after the rate cut, the economy is unlikely to immediately stabilize