FridayFiled under Asia News, Eastern Asia, Business & Politics
China cut borrowing costs for the first time since 2008 and loosened controls on banks’ lending and deposit rates, stepping up efforts to combat a deepening slowdown as Europe’s debt crisis threatens global growth.
The one-year lending rate declines by a quarter percentage point today to 6.31 percent, the People’s Bank of China said in a statement yesterday. The one-year deposit rate drops the same amount, to 3.25 percent. The extra leeway banks will get to determine rates at variance from the official setting was called a “milestone” by UBS AG.
The move, before China reports inflation, investment and output figures tomorrow, may signal that the economy is weaker than the government anticipated. Policy makers across the globe are also girding for a deeper impact from Europe’s woes, with Australia and Brazil also lowering rates in the past eight days. In South Korea, a pause in raising the benchmark has lasted a year, with the central bank staying on hold today.
“This will be the beginning of a rate cut cycle and there will be at least one more reduction this year,” said Shen Jianguang, a Hong Kong-based economist with Mizuho Securities Asia Ltd. who has worked for the European Central Bank. “The data to be released over the weekend must be very weak and inflation must have eased sharply.” Continue…
All entries filed under Business & Politics
no responses - Posted 01.27.12
Jetstar Japan Co., the budget carrier set to begin flights this year, said it may grow to 100 planes by the end of the decade, helped by fares about 50 percent cheaper than full-service airlines.
no responses - Posted 11.27.10
The Japanese cabinet’s extra budget for financing a stimulus package worth about 5 trillion yen (59 billion U.S. dollars) was enacted on Friday.
The budget involves 4.4 trillion yen in actual spending. The move is aimed at combating the impact of the increasing strength of the Japanese yen and spurring the deflation-plagued economy.
no responses - Posted 07.06.10
Toyota Motor Corp. started Monday a global recall over engine defects in its Lexus luxury models sold around the world, as well as the Crown sold in Japan, moving to repair some 270,000 vehicles to replace valve springs – crucial engine components that are flawed and could cause vehicles to stall.
no responses - Posted 04.07.10
U.S. allies in Asia on Wednesday welcomed President Barack Obama’s new policy aimed at reducing the likelihood of nuclear conflict, while powerhouse China was silent over his call for Beijing to better explain its nuclear intentions.