Editor's Note: The central bank cut interest rates for a second time in a month, fueling concerns that the growhth of the world's second-largest economy is weaker than predicted. Experts expected these interest rates cuts to bolster the economic growth. |
Highlights
China's swap rate has climbed to a three-month high, reflecting a worsening cash crunch as the central bank refrains from easing lenders' reserve requirements.
Interest Rates
The People's Bank of China lowered benchmark deposit rates on July 5 by 25 basis points and cut lending rates by 31 basis points, effective from July 6.
Monetary Policies
China's central bank said Sunday it will strengthen the fine-tuning of its monetary policy in the second half of this year.
Reserve Requirement Ratios
China will lower banks' reserve requirement ratio by 0.5 percentage points starting May 18, the country's central bank announced.
Experts Say
The eurozone currencies record their biggest falls against the dollar since 1998, but the yuan is well placed to appreciate.
| Changes in Reserve Requirement Ratios Since 2010 |
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Timeline
2012 July 6 One-year deposit rate was lowered by 0.25 of a percentage point, and one-year lending rate was cut by 0.31 of a percentage point.
June 8 One-year deposit and lending rates were lowered by 0.25 of a percentage point.
2011 July 7 One-year deposit and lending rates were raised by 0.25 of a percentage point.
June 20 The reserve requirement ratio was increased by half of a percentage point.
May 18 The reserve requirement ratio was increased by half of a percentage point.
April 6 One-year deposit and lending rates were raised by 0.25 of a percentage point.
March 25 The reserve requirement ratio was increased by half of a percentage point.
February 24 The reserve requirement ratio was increased by half of a percentage point.
February 9 One-year deposit and lending rates were raised by 0.25 of a percentage point.
January 20 The reserve requirement ratio was increased by half of a percentage point. |
| Changes in Interest Rates Since 2010 |
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