China Cuts Interest Rates For The Fifth Time Mid Since - Dec 23, 2008

To arrest the deceleration in growth, China has cut its one year lending rate by 27 basis points to 5.31%. Similarly, deposit rates too have been cut by similar 27 basis points to 2.25%. This was the fifth time rates have been cut in China since Mid September 2008. Further it has also reduced reserve requirement (proportion of deposits to be set aside as reserves) by 50 basis points to 13.5% for smaller banks and to 15.5% for big banks, effective from 25th December 2008.