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1 Mar 2015
PBOC easing cycle continues, cuts rate again
FXStreet (Bali) - Over the weekend, the Peoples Bank of China announced a surprising cut in their benchmark interest rates by 0.25% to 2.5%, while also deciding that the 1-year lending rate will decline to 5.35% on March 1.
Further policy decisions
PBOC to further liberalise interest rates
PBOC to lift ceiling for the floating range for saving rate to 1.3 times benchmark
Analysts' view
Wang Tao, the chief China economist at UBS, was cited by Bloomberg, saying: "A rate cut was urgently needed. The debt burden is heavy, and the PBOC has to act to keep the financial market stable."
Shen Jianguang, the chief Asia economist at Mizuho Securities, notes - via Bloomberg - "this time the PBOC acted very well", adding that "after two rate cuts, the financing costs will be cut down pretty effectively, but more rate reductions are still needed."
Further policy decisions
PBOC to further liberalise interest rates
PBOC to lift ceiling for the floating range for saving rate to 1.3 times benchmark
Analysts' view
Wang Tao, the chief China economist at UBS, was cited by Bloomberg, saying: "A rate cut was urgently needed. The debt burden is heavy, and the PBOC has to act to keep the financial market stable."
Shen Jianguang, the chief Asia economist at Mizuho Securities, notes - via Bloomberg - "this time the PBOC acted very well", adding that "after two rate cuts, the financing costs will be cut down pretty effectively, but more rate reductions are still needed."