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China Ready To Cut Rates Again

China is prepared to cut interest rates again, concerned that falling prices could trigger a surge in debt defaults, business failures and job losses, reports Reuters quoting sources involved in policy-making.

"Top leaders have changed their views," said a senior economist at a government think-tank. "Further interest rate cuts should be in the pipeline as we have entered into a rate-cut cycle and reserve requirement ratio cuts are also likely."

In as surprise move on Friday, the People's Bank of China lowered one-year benchmark lending rates by 40 basis points to 5.6%.