China’s central bank on Friday unexpectedly cut its key interest rates for the first time in more than two years in a bid to boost growth momentum.
The People’s Bank of China reduced the one-year lending rate by 40 basis points to 5.60 percent and the one-year deposit rate was cut by 25 basis points to 2.75 percent. The new rates are effective tomorrow, the bank said in a statement on its website.
The surprise rate cut, which was the first reduction in rates since July 2012, comes as the worlds’ second largest economy is forecast to log its weakest growth in nearly 25 years.
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