Interest rates slashed in China

China has cut its key interest rates by 1.08 percent to 5.58 percent today, this being the largest cut the Chinese government has made for a decade in an attempt to shore up the economy.

The cut which is the forth in three month’s emphasizes the government’s fears of slipping growth rates, and its aim to encourage consumers and companies to spend more.

The growth in China has grown at double figures for half a decade, now sadly in 2008 this has come to an end with the world bank cutting its GDP prediction for 2009 to 7.5 percent from 9.2 percent, a rate like this has not been seen since 1990.

Earlier this month officials announced a 4 trillion Yuan (£385 billion) incentive package, however it’s transpired that the central government will only provide a third of the money, the rest to come from private investments and local authorities.

Source: Guardian