Justice minister, DGA chief discuss partnership to boost digital judicial services    Netanyahu does not rule out further strikes on Hamas leaders    US farmers are being squeezed – and it's testing their deep loyalty to Trump    Romania condemns 'irresponsible' Moscow after Russian drone breaches its airspace    Kirk's assassination is forcing US politicians to make difficult choices about their safety    India players refused handshakes, says Pakistan coach    Final stage of Spanish Vuelta cycling race abandoned after disruption by pro-Palestine protesters    Mané fires Al Nassr past Al Kholood to keep perfect start as Ronaldo honored    Lacazette brace earns NEOM SC first Saudi Pro League win    Adolescence star Owen Cooper makes Emmys history at 15    Saudi liquidity grows 8.4%, reaching SR3.1 trillion in July 2025    Over 434,000 people acquire first aid skills during nationwide health campaign    Saudi Arabia's legislative advancement highlighted at International Conference on Judicial Training    Sudden swerving among 3 major causes of accidents in Riyadh in 2024    Princess Haifa emphasizes pivotal Saudi role in shaping future of tourism    Sahm Capital names Saudi Olympian Fayik Abdi as brand ambassador    SR9000 fine for copyright infringement using AI    King Charles and Prince Harry finally reunite after 19 months apart    Anastacia: Arnold Schwarzenegger made me sing Whatta Man 12 times    Thousands pay their last respects to Giorgio Armani, private funeral on Monday    The key to happiness    Sholay: Bollywood epic roars back to big screen after 50 years with new ending    Ministry launches online booking for slaughterhouses on eve of Eid Al-Adha    Shah Rukh Khan makes Met Gala debut in Sabyasachi    Exotic Taif Roses Simulation Performed at Taif Rose Festival    Asian shares mixed Tuesday    Weather Forecast for Tuesday    Saudi Tourism Authority Participates in Arabian Travel Market Exhibition in Dubai    Minister of Industry Announces 50 Investment Opportunities Worth over SAR 96 Billion in Machinery, Equipment Sector    HRH Crown Prince Offers Condolences to Crown Prince of Kuwait on Death of Sheikh Fawaz Salman Abdullah Al-Ali Al-Malek Al-Sabah    HRH Crown Prince Congratulates Santiago Peña on Winning Presidential Election in Paraguay    SDAIA Launches 1st Phase of 'Elevate Program' to Train 1,000 Women on Data, AI    41 Saudi Citizens and 171 Others from Brotherly and Friendly Countries Arrive in Saudi Arabia from Sudan    Saudi Arabia Hosts 1st Meeting of Arab Authorities Controlling Medicines    General Directorate of Narcotics Control Foils Attempt to Smuggle over 5 Million Amphetamine Pills    NAVI Javelins Crowned as Champions of Women's Counter-Strike: Global Offensive (CS:GO) Competitions    Saudi Karate Team Wins Four Medals in World Youth League Championship    Third Edition of FIFA Forward Program Kicks off in Riyadh    Evacuated from Sudan, 187 Nationals from Several Countries Arrive in Jeddah    SPA Documents Thajjud Prayer at Prophet's Mosque in Madinah    SFDA Recommends to Test Blood Sugar at Home Two or Three Hours after Meals    SFDA Offers Various Recommendations for Safe Food Frying    SFDA Provides Five Tips for Using Home Blood Pressure Monitor    SFDA: Instant Soup Contains Large Amounts of Salt    Mawani: New shipping service to connect Jubail Commercial Port to 11 global ports    Custodian of the Two Holy Mosques Delivers Speech to Pilgrims, Citizens, Residents and Muslims around the World    Sheikh Al-Issa in Arafah's Sermon: Allaah Blessed You by Making It Easy for You to Carry out This Obligation. Thus, Ensure Following the Guidance of Your Prophet    Custodian of the Two Holy Mosques addresses citizens and all Muslims on the occasion of the Holy month of Ramadan    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



China cuts interest rates again as outlook darkens
Published in The Saudi Gazette on 30 - 10 - 2008

China cut interest rates on Wednesday for the third time in six weeks to help the world's fourth-largest economy ride out the reverberations of the global financial crisis.
The People's Bank of China (PBOC) said the benchmark rate for one-year loans by commercial banks will fall by 0.27 percentage point to 6.66 percent, while the rate on one-year certificates of deposit will drop to 3.60 percent from 3.87 percent.
“Growth is slowing down and policy makers want to take more action to contain the downside risks and to support sentiment in the market,” said Yiping Huang, chief Asia economist with Citigroup in Hong Kong.
The yen briefly dipped against the dollar after the cut, which will take effect on Thursday.
Central banks around the globe are scrambling to cut interest rates to cushion the economic fallout of the worst financial crisis since the Great Depression in the 1930s.
“I think this is also part of a coordinated move of global central banks to bail out the financial markets,” said Zhao Qingming, senior economist at China Construction Bank in Beijing.
“Though other central banks have not announced rate cuts yet, we can see that they are on the way,” he said.
The Federal Reserve is widely expected to cut US interest rates on Wednesday. The European Central Bank has pointed to the scope for lower borrowing costs now that inflation is receding. And the Bank of Japan is gearing up to cut rates at a meeting on Friday, according to a source with knowledge of the matter.
The PBOC also cut interest rates on Sept. 15 and Oct. 8. Unlike on those two occasions, however, it did not reduce banks' reserve requirements this time.
The last move three weeks ago coincided with rate cuts by leading central banks around the world, fanning speculation that other banks will follow the PBOC's latest easing before long.
“China is the most important emerging market now, and so its joining global coordinated rate action certainly should make an even clearer policy statement that they want to do whatever it takes to calm down the markets,” Huang said.
As well as easing monetary policy, Beijing has rolled out a series of measures in the past week to support growth.
The government has increased tax rebates for exporters of labour-intensive goods and lowered down payments and mortgage rates for first-time home buyers.
Infrastructure spending is being ramped up, especially on railways, and media reports say a big effective cut in value-added tax will kick in on Jan. 1.
“All this highlights the global scale of the weakening growth profile. Even China is not immune,” said Audrey Childe-Freeman, senior foreign exchange strategist at Brown Brothers Harriman.
“Pro-active fiscal/monetary policy responses can only be encouraged. It is in everybody's interest that China avoids a hard landing scenario,” she said.
The cut, which takes effect on Thursday, comes a little earlier than expected, said Ben Simpfendorfer, an economist at Royal Bank of Scotland in Hong Kong.
“It does suggest some growing concern about the economic outlook,” he said.
Chinese exports are slowing as overseas demand wilts, while the property sector, which accounts for a quarter of fixed-asset investment, is in full retreat, hitting the construction and metals industries hard. “We can't rule out another rate cut before the end of the year,” Simpfendorfer said.


Clic here to read the story from its source.