China prepares for the financial storm
Photo courtesy of http://www.eeo.com.cn
China’s latest bid to cut interest rates by by 0.27 percentage points as of Oct. 30 marks her starkness recognition that the economic turmoil is likely to exert pressure on its export-oriented economy structure.
The People’s Bank of China (PBOC) said the government’s cut in interest rates for the second time in one month, demonstrated their resolution to cope with the world crisis and bolster domestic economy by using a flexible monetary policy. The previous cut was on Oct. 8.
Last week, The PBOC announced the benchmark one-year deposit rate would drop to 3.60 percent from 3.87percent, while the benchmark one-year lending rate would fall from 6.93 percent to 6.66 percent.
In the meantime, the nation’s inflation pressure has been eased. Premier Wen Jiabao said he expected the downward trending inflation would keep falling for the remainder of the year.
While we get ready for the unavoidable growing pains, Aliuser suggests to taking a break, listening to ” Stand by me” by John Lennon to make ourselves feel better!!
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