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Technology Stocks : C-Cube -- Ignore unavailable to you. Want to Upgrade?

To: BillyG who wrote (37667)	12/6/1998 7:15:00 PM
From: Cameron Lang	Read Replies (1) \| Respond to of 50808

China cuts interest rates... abcnews.com WIRE:Dec. 6, 5:58 p.m. ET Chinese central bank cuts rates AP News Service BEIJING (AP) _ In a surprise move aimed at halting price deflation and reviving global economic growth, China's central bank Sunday cut interest rates on both deposits and loans by 0.5 percentage point, Chinese state media reported. The interest rate cuts, which take effect Monday, are the third time the People's Bank of China has eased credit since October last year, the Xinhua News Agency reported. An unidentified PBoC spokesman said the bank wants to help reverse price deflation, ease debt burdens of state companies and ward off global recessionary pressures. ''Based on these factors, there was a need to gradually reduce interest rates,'' Xinhua quoted the official as saying. According to Xinhua, three-month deposits at Chinese financial institutions won't change, but rates on one-year fixed-term deposits have been sliced to 3.78 percent from 4.77 percent. Cuts on other deposits weren't specified. One-year loans now carry an interest rate of 6.39 percent, down from 6.93 percent. Many experts had ruled out China loosening credit before the end of the year. Previous interest rate cuts had failed to reverse losses at state enterprises or significantly spur consumer demand. Profits of China's state banks have been shrinking even with the lower interest on their lending.