(MENAFN) China cut interest rates unexpectedly, stepping up a campaign to prop up growth in the world's second-largest economy as it heads towards its slowest growth in nearly a quarter century, Gulf News reported.
The cut came as factory growth has slowed and the property market, long a pillar of growth, has remained weak, dragging on broader activity and curbing demand for everything from furniture to cement and steel.
The People's Bank of China said it was cutting one-year benchmark lending rates to 5.6 percent. The central bank also took a step to free up deposit rates, allowing banks to pay depositors 1.2 times the benchmark level.
"It's a surprise, another Friday night special. It may not have a major impact on GDP growth that depends on if policymakers also allow the rate of credit growth to pick up," Chief Asia Economist said.
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