China Cuts Interest Rate

Filed in archive News on September 16, 2008

After five years of tight monetary policy, China's central bank announced a cut in a key interest rate Monday.

According to an AP report, the bank said it was lowering the rate on one-year yuan-denominated loans by 0.27 percent to 7.20 percent effective Tuesday.

China has had relatively tight monetary policy since 2003 in an effort to keep inflation low and prevent the economy from overheating. But the slowing of the Chinese economy has evidently now become more of a concern. Analysts think the move will help stop the decline in China's stock markets.


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