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11 May 2015
China cut interest rates again – Blueprint Capital
FXStreet (Barcelona) - Sighting the building downward pressures on the economy, the PBoC cut its benchmark rates again by 25bps, notes the Blueprint Capital FX team.
Key Quotes
“For the third time in six months, amid continuing economic slowdown, the People’s Bank of China (PBOC) said yesterday it was lowering its benchmark rate by 25 basis points to 5.1% as well as cutting the benchmark deposit rate by the same amount to 2.25%.”
“The Chinese economy is still facing ‘relatively big downward pressure’ with domestic prices remaining low, and real interest rates are still ‘higher than the historical average’ said the PBOC in a statement.”
“The cut comes days after weaker than expected April trade and inflation data, highlighting that China’s economy is under persistent pressure from soft demand at home and abroad.”
Key Quotes
“For the third time in six months, amid continuing economic slowdown, the People’s Bank of China (PBOC) said yesterday it was lowering its benchmark rate by 25 basis points to 5.1% as well as cutting the benchmark deposit rate by the same amount to 2.25%.”
“The Chinese economy is still facing ‘relatively big downward pressure’ with domestic prices remaining low, and real interest rates are still ‘higher than the historical average’ said the PBOC in a statement.”
“The cut comes days after weaker than expected April trade and inflation data, highlighting that China’s economy is under persistent pressure from soft demand at home and abroad.”