The Central Bank of China cut its official interest rates by 25 basis points
PRESS RELEASE May 17th,2001
The Central Bank of China (CBC) at its ad hoc board meeting today decided to lower the rediscount rate and the rate on accommodations with collateral both by 25 basis points to 3.75 percent and 4.125 percent, respectively, effective from May 18, 2001. The rate on accommodations without collateral was also lowered from 9.625 percent to 6.0 percent.
Over the recent months, the unemployment rate has been rising continuously, private investment and consumption have turned conservative, and bank credit expansion and growth of monetary aggregates have both slowed down. With the prerequisite of price stability over the current and future periods, these actions were taken to boost the sagging economic sentiment.
Meanwhile, the CBC again called on the banking sector to fully carry out its function of financial intermediaries by providing sufficient funds to support economic activities under the precondition of prudential risk management.
The Central Bank of China