Monday, September 15, 2008

China Cuts Interest Rates

Time is to decouple. Difference is that Chinese stock market is already down more then 60% this year. So they are cutting at equivalent of DOW drop to 5000.
"Sept. 15 (Bloomberg) -- China cut interest rates for the first time in six years and allowed most banks to set aside smaller reserves as worsening credit-market turmoil and weakening export demand dimmed the outlook for economic growth.
The People's Bank of China reduced the one-year lending rate to 7.20 percent from 7.47 percent, effective tomorrow, and lowered the reserve ratio at the nation's smaller banks by 1 percentage point. The changes were in a statement on the central bank's Web site today."

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