China Cuts Interest Rates by 0.25 PPT, Cuts RRR by 0.5 PPT

China Cuts Interest Rates by 0.25 PPT, Cuts RRR by 0.5 PPT.

Below is the release from the People's Bank of China (Translated):

People's Bank of China, from October 24, 2015, down financial institutions RMB benchmark lending and deposit interest rates, in order to further reduce the social cost of financing. Among them, one-year benchmark lending rate by 0.25 percentage point to 4.35%; year benchmark deposit rate by 0.25 percentage point to 1.5%; adjusted for each other grade benchmark interest rate loans and deposits, the People's Bank lending rates of financial institutions ; personal housing accumulation fund loan interest rates remain unchanged. Meanwhile, commercial banks and rural cooperative financial institutions are no longer set the upper limit of the floating interest rates on deposits, and pay close attention to improve the market-oriented interest rate formation and regulation mechanism, strengthen the central bank interest rate system of regulation and supervision, improve the efficiency of monetary policy transmission.

Since the same date, down financial institutions RMB deposit reserve ratio by 0.5 percentage points, in order to maintain reasonably adequate liquidity in the banking system, guide steady moderate growth of money and credit.Meanwhile, to increase financial support for the "three rural" and small businesses a positive incentive for additional standards-compliant financial institutions to reduce the deposit reserve ratio by 0.5 percentage points. (Finish)

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