China may cut interest rates

February 27th, 2012 - 1:39 pm ICT by IANS  

Beijing, Feb 27 (IANS) An uncertain outlook for overseas markets could lead to a cut in Chinese interest rates, according to a report.

The report was jointly released by Xiamen University, the National University of Singapore and the Economic Information Daily, a Beijing-based newspaper.

Citing the report, the Shanghai Securities News said Monday China may cut interest rates in both the second and third quarters since economic growth is likely to further decelerate in the eurozone and economic recovery in the United States continues at a slow pace.

The report predicts China’s central bank will cut the interest rate by 25 basis points each time, reducing the one-year lending rate to 6.06 percent from the current 6.56 percent after two rounds of cuts, reported Xinhua.

The report also predicts that inflation in China will drop to 3.33 percent this year if conditions in Iran and Syria don’t cause an oil crisis.

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