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UPDATE: Stocks Futures Ramp as China Cuts Rates

June 7, 2012 7:11 AM EDT Send to a Friend
(Updated - June 7, 2012 7:16 AM EDT)

U.S. stocks futures jumped higher early Thursday after China's central bank cut its benchmark interest rate by 25 basis points for the first time since 2008.

Meanwhile, the Bank of England left rates unchanged at 0.5% and maintained the size of its quantitative easing program.

Dow and S&P futures immediately spiked higher upon the Chinese rate cut news as it signals the country is taking aggressive measures to restore growth.

PBOC Statement:
The People's Bank of China decided to cut financial institutions RMB benchmark deposit and lending interest rates since June 8, 2012. One-year benchmark deposit rate cut of 0.25 percentage points, year benchmark lending interest rate cut by 0.25 percentage points; other deposit and lending interest rates and individual housing provident fund deposit and lending rates be adjusted accordingly.

Since the same day: (1) the upper limit of the floating range of interest rates on deposits of financial institutions was adjusted to 1.1 times the benchmark interest rate; (2) loans from financial institutions interest rate floating range of the lower limit was adjusted to 0.8 times the benchmark interest rate.




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