Page last updated at 12:42 GMT, Wednesday, 29 October 2008

China cuts interest rates again

China flag
China has cut interest rates for the third time in six weeks

China's central bank has cut the country's interest rate by 0.27% in order to stimulate economic growth.

The rate cut, which will come into effect on Thursday, will see rates fall from 6.93% to 6.66%.

This is the third interest rate cut made by the Chinese authorities in the past six weeks.

The Federal Reserve is widely expected to cut rates in the US later today, and other countries across the globe could follow suit in the coming weeks.

China's central bank has also lowered the rate on one-year fixed deposits, from 3.87% to 3.6%.

Slowing growth

China's economy, forecast to grow at 9% in 2008, has been relatively unaffected by the global financial crisis compared with other global economies, many of which, including the UK, are heading into recession.

However, China grew by 11.9% last year and the government is concerned that falling demand for the country's exports may put further downward pressure on overall economic growth.

It hopes that cutting interest rates to stimulate further domestic growth will offset any drop-off in exports.

Print Sponsor



FEATURES, VIEWS, ANALYSIS
Has China's housing bubble burst?
How the world's oldest clove tree defied an empire
Why Royal Ballet principal Sergei Polunin quit

BBC iD

Sign in

BBC navigation

Copyright © 2017 BBC. The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.

Americas Africa Europe Middle East South Asia Asia Pacific