China’s central bank wants to “boost” consumption – Boursier.com

China's central bank wants to "boost" consumption – Boursier.com

(Boursier.com) – Faced with the economic slowdown, the central bank of China announced Friday a decline in interest rates for the first time in over two years. The benchmark one-year lending and goes to 5.6% (-40 basis points), while the deposit rate was lowered by 25 basis points to 2.75%. These decisions take effect tomorrow, Saturday, November 22 …

Boosting consumption

To boost consumption, the People’s Bank of China will also continue liberalization of rates interest in raising the ceiling on lending rates that can be paid on deposits to 1.2 times the reference rate against 1.1 times previously, according to the news agency Reuters. In the same vein, the government had raised in the first half, minimum wages in 16 provincial towns.

Growth slow but “viable”

In the third quarter, Chinese

growth was + 7.3%, after 7.5% in the second quarter. On a quarter over quarter, GDP grew by 1.9%, against 2% in the second quarter. According to the International Monetary Fund (IMF) has recently updated its outlook, Chinese growth should be 7.4% this year and 7.1% next year, after 7.7% in 2013. The OECD aims to expand its share in GDP of around 7% during the period 2015/2016, slightly below the 7.4% expected in 2014. “China is trying to rebalance its economy while striving to control its slow to return to more sustainable growth, “argues the organization …

  Marianne Davril – © 2014 Boursier.com