Alternative moves likely after Fed cut

China to rely on market-oriented interest rate reform instead of immediate drop

China's central bank may take an alternative approach to maintain lower corporate borrowing costs instead of an immediate interest rate cut - following the US Federal Reserve's quarter-percentage-point cut on Wednesday - to support the domestic economy and ease downward pressure in the second half of the year, the country's policy advisers said.

The US Fed made the first cut in its key interest rate in a decade to counter impacts from trade tension, low inflation and global weakness. It was widely expected that China would follow suit to lower its benchmark interest rate to fuel future economic growth.