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China Daily Website

China's interest rate cutting cycle to end

Updated: 2012-09-19 20:10
By Hu Yuanyuan (

China's interest rate cutting cycle has ended and the next cut will be in late 2013, Standard Chartered Bank said in a research note on Sept 19.

"We now expect interest rates to remain flat until the fourth quarter of 2013, versus our previous call of one more cut in the benchmark rate," said Stephen Green, an economist at Standard Chartered.

The bank lowered China's GDP growth forecasts for 2012 and 2013 to 7.7 percent and 7.8 percent respectively, from the previous 8.1 percent and 8.7 percent.

"We expect clearer signs of the start of a moderate recovery to emerge in the fourth quarter this year and early 2013," Green said.

The bank kept its dollar-yuan forecasts unchanged for 2012-13 but adjusted its end-2014 forecast to 6.00 from 5.83.