In Change of Strategy, China Cuts Interest Rate
For months, Beijing avoided broad stimulus measures, signalling that it was comfortable with the country's slowing growth. But sliding house prices, reduced foreign investment and a flagging manufacturing sector, coupled with the continuing woes in Japan and Europe, prompted the People's Bank of China to make a move.
- {{x.value}}
{{ twilioFailed ? 'SMS Code Failed to Send…' : 'Enter your SMS code' }}
A text message with your verification code was just sent to {{user.DayPhone}}
We cannot send you a code via SMS to {{user.DayPhone}}
Hi {{ user.FirstName }}, please provide your mobile number.
{{ content.trialHeading.replace('{0}', user.FirstName) }}
We'll send you a text message with a verification code to start your free {{ '0' == '1' ? 'Eureka Report' : 'Intelligent Investor' }} 15-day trial.
{{ content.upgradeHeading.replace('{0}', user.FirstName) }}
The email address you entered is registered with InvestSMART.
Please login to continue
We have sent you an email with the details of your registration.
Looks you are already a member. Please enter your password to proceed
{{ upgradeCTAText }}
Updating information
Please wait ...
Your membership to InvestSMART Group recently failed to renew.
Please make sure your payment details are up to date to continue your membership.
Having trouble renewing?
Please contact Member Services on support@investsmart.com.au or 1300 880 160
You've recently updated your payment details.
It may take a few minutes to update your subscription details, during this time you will not be able to view locked content.
If you are still having trouble viewing content after 10 minutes, try logging out of your account and logging back in.
Still having trouble viewing content?
Please contact Member Services on support@investsmart.com.au or 1300 880 160
Please click on the ACTIVATE button to activate your Eureka Report 15-day free trial
Please click on the ACTIVATE button to activate your Intelligent Investor 15-day free trial
Please click on the ACTIVATE button to finalise your membership
Unsuccessful registration
Registration for this event is available only to Eureka Report members. View our membership page for more information.
Registration for this event is available only to Intelligent Investor members. View our membership page for more information.
- You are already registered for this event.
- This event is already full.
- Please select a quantity for at least one ticket.
- {{ i }}
Forgotten password
Please enter your email address below to request a new password
- Indepth analysis of ASX listed shares
- BUY, Hold and Sell Recommendations
- Ideas Lab
- Special Reports
- Alan Kohler’s Weekend Briefing
- Interviews with CEO’s & top influencers
- Money Cafe and Talking Finance
- Super Advice and Q&A with Ask Alan
“China finally admitted it has a growth problem — and that is a big step to getting the global economy back on track” - By Neil Gough, Reporter, New York Times
Below summary by Anthony O'Brien
For months, Beijing avoided broad stimulus measures, signalling that it was comfortable with the country’s slowing growth.
But sliding house prices, reduced foreign investment and a flagging manufacturing sector, coupled with the continuing woes in Japan and Europe, prompted the People’s Bank of China to make a move. The central banks cut its benchmark one-year deposit rate by 0.25 percentage points, to 2.75 percent, and reduce the one-year lending rate by 0.4 percentage points, to 5.6 percent.
Policy makers also said they would give China’s banks more leeway in determining interest on deposits.
Most immediately, the rate cuts will make financing easier for the country’s large state-owned companies, which tend to enjoy easier access to loans from the government-controlled banking sector. That will help ease China’s debt pressure, as companies find it cheaper to pay off or refinance loans that are coming due.
But the move is not without risks.
To read the full article click here
Join the Conversation...
There are comments posted so far.
If you'd like to join this conversation, please login or sign up here
