China reduces credit interest rate

September 15th, 2008 - 4:53 pm ICT by IANS  

Beijing, Sep 15 (Xinhua) China’s central bank said Monday it will reduce the benchmark loan interest rate and the reserve requirement ratio for commercial banks to ensure a steady and rapid economic growth. The benchmark interest rate for one-year yuan-denominated loans will be adjusted down 0.27 percentage points from Tuesday, while the ratio of deposit that lenders are required to set aside will be down one percentage points from Sep 25, said the People’s Bank of China.

However, the country’s major lenders will be exempt from the reserve requirement ratio adjustment.

They include the Industrial and Commercial Bank of China, the Agricultural Bank of China, the Bank of China, the China Construction Bank, the Bank of Communications and the Postal Savings Bank of China.

The reserve requirement ratio will be reduced by two percentage points for local financing institutions at areas badly hit by the Wenchuan earthquake in May, the bank said.

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