China’s central bank cut interest rates yesterday and said that it would pump liquidity into the banking sector in a bid to boost the country’s slowing economy and stem a slump in share prices that has alarmed global investors.
The People’s Bank of China said after the market close that it had reduced its benchmark one-year lending rate
by 25 basis points to 4.6 per cent with immediate effect, the fifth time it has cut rates since November.
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