The Rising Influence of Rising Affluence

[DewDiligence]

China cuts benchmark interest rates by 25 basis points to foster growth:

http://online.wsj.com/article/SB10001424052702303665904577452030622847766.html

The one-year benchmark lending rate will fall to 6.31% from 6.56%, and the one-year benchmark deposit rate to 3.25% from 3.50%.

In addition, the PBOC will allow deposit rates to rise to 110% of the benchmark rate, and the lending rate to fall to 80% of the benchmark. Currently, deposit rates are not allowed to rise above the benchmark deposit rate, while lending rates are allowed to go down to 90% of the benchmark lending rate.

The changes effectively mean that the maximum deposit rate will rise to 3.58% from 3.50% earlier, while the minimum lending rate will fall to 5.05% from 5.90%.