China’s Central Bank Lowers Rates, Withdraws Cash

China is taking measures to combat inflation, lowering interest rates and withdrawing cash from its central banking system....
China’s Central Bank Lowers Rates, Withdraws Cash
Written by WebProNews
  • China is taking measures to combat inflation, lowering interest rates and withdrawing cash from its central banking system.

    Countries around the world are struggling with runaway inflation and the beginnings of an economic downturn. China appears to be taking aggressive steps to bolster its economy, with Reuters reporting the country’s central bank has lowered a key interest rate for the second time this year. In addition, the bank withdrew cash from the banking system.

    “The rate cut surprises us,” said Xing Zhaopeng, senior China strategist at ANZ, told Reuters.

    “It should be a response to the weak credit data on Friday. The government remains cautious about growth and will not let go.”

    The People’s Bank of China (PBOC) said the move was to “keep banking system liquidity reasonably ample.”

    Get the WebProNews newsletter delivered to your inbox

    Get the free daily newsletter read by decision makers

    Subscribe
    Advertise with Us

    Ready to get started?

    Get our media kit