The People’s Bank of China (PBOC), China’s central bank, announced the first interest rate cuts in more than two years on Friday.
The PBOC cut the benchmark rate for one-year deposits by 25 basis points and the one-year lending rate by 40 basis points from Saturday. This is the first adjustment to the benchmark rates since July 2012.
After the cut, the one-year deposit rate will stand at 2.75 percent, while one-year lending will be at 5.6 percent.
The intention is to lower market interest rates and private financing costs to help alleviate problems facing many enterprises, the central bank said in a separate statement after the interest rate announcement.
Don Gimbel of Geneva Investment discusses China’s interest rate cut
CCTV America’s Michelle Makori interviewed Don Gimbel, chief investment officer at Geneva Investment Management, about China’s interest rate cut.