- The PBoC cut lowered borrowing costs for the first time since 2008.
- The bank cut the benchmark 1-year deposit rate by 25 bps from 3.5% to 3.25%
- The 1-year lending rate will fall from 6.56% to 6.31%.
- Meanwhile, deposit rates will be allowed to be 110% of the benchmark rate, while lending rate can fall to 80% of the benchmark rate.
- This action comes after 3 rate hikes in 2011, and shows that the Chinese government is concerned with the slowdown.
Fan Yang CMT is the Chief Technical Strategist, trader, educator and a of the main contributors to FXTimes - provider of Forex News, Analysis, Education, Videos, Charts, and other trading resources.
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