By CentralBankNews.info
China’s central bank cut its benchmark one-year lending rate by 40 basis points to 5.6 percent, the first rate cut since July 2012, along with the one-year deposit rate that was cut by 25 basis points to 2.75 percent.
The People’s Bank of China (PBOC) said in a statement that the new interest rates would take effect from Saturday, Nov. 22.
The PBOC also continued the process of liberalizing interest rates, allowing banks to pay depositors up to 1.2 times the benchmark rate, up from 1.1 times.