Economic growth is all a matter of interest

On Friday, the People's Bank of China and the State Council launched a coordinated move to pull the blistering economy on to a sound track of development.

The central bank raised the benchmark one-year deposit and lending rates of commercial banks by 0.27 percentage points, effective from Saturday, and the State Council decided to cut the income tax from bank deposit interests from 20 percent to 5 percent since August 15.

The two major policy moves are aimed at realizing a reasonable growth in bank credits and investment, easing the inflation pressure and maintaining a stable price level for the country.