China's central bank today cut key interest rates in a bid to spur economic growth, the third such move in six weeks.
The People's Bank of China decided to cut the benchmark one-year deposit rate by 27 basis points to 3.6%, it said in a statement. The one-year lending rate was also reduced by 27 basis points to 6.66%, the bank said.
Stock markets soared in Asia and Europe today ahead of an expected rate cut in the US and as hopes rose of a similar move in Japan.
When China last cut interest rates early this month, speculation was ripe that the decision was made in coordination with other central banks, which also slashed rates at the same time.
This is the third time in just over six weeks that China has cut interest rates. It reduced its benchmark one-year lending rate to 7.2% in September, the first such cut since 2002 in a strong indication that it was concerned about the need to spur growth.
China's economic growth slowed to 9.9% in the first nine months of the year, as the global financial crisis started to have an impact on the world's most populous nation.
In the third quarter, the economy grew by just 9%, the first time since the fourth quarter of 2005 that quarterly growth slipped into single digits.
