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    China cuts interest rates to warm up real economy  

    中國釋放強烈“貨幣信號”力挺經濟“回溫”

    中國銀行國際金融研究所副所長宗良接受中新社記者采訪時表示,“信號非常明確”,央行就是要向市場表明支持實體經濟、有效降低企業融資成本的決心。

    2012-07-06 15:34 Ecns.cn     Web Editor: Xu Rui comment

    Beijing (CNS) -- The People's Bank of China's unexpected reduction of interest rates on Thursday is a clear sign of the PBC endorsement of real economy stimulation, and its determination to lower the costs of financing business activity, commented Zong Liang, Deputy General Manager with the Institute of International Finance, Bank of China.

    The asymmetric interest rate cuts will stimulate investment and consumption, serving as a countermeasure to economic slowdown, Zong added.

    The reduction policy came earlier than expected, said Chu Jianfang, chief economist with CITIC Securities, mainly due to huge economic downside pressure in the second quarter. The policy is aimed to attract market capital to real economy sectors in view of the fact Q2 GDP growth is expected to go below 8 percent.

    Lu Zhengwei, chief economist at Industrial Bank, echoed Chu's opinion, adding that this interest rate policy is a relatively gentle measure that only works in the long term, and suggesting more emphasis put on the constraint of supervisory indexes such as loan-to-deposit ratio and capital adequacy ratio on credit loans.

     

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    中國釋放強烈“貨幣信號”力挺經濟“回溫”

    中國銀行國際金融研究所副所長宗良接受中新社記者采訪時表示,“信號非常明確”,央行就是要向市場表明支持實體經濟、有效降低企業融資成本的決心。

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