China's central bank said yesterday it would cut the level of funds commercial banks must hold in reserve by 1 percentage point, the second such move this year to boost lending.The move, effective today, comes after the world’s second largest economy reported its worst quarterly growth for six years.
The central bank has tightened rules on currency derivatives in a bid to curb speculation that it says has been driving the sol's slide.Peru's economy has been growing at its weakest pace since 2009, but the central bank expects a strong recovery to take root in the second quarter.
In a statement on its website, the People’s Bank of China said it will give an additional 1 percentage point reserve requirement ratio (RRR) cut to banks for agricultural services and a further 2-percentage-point cut to the Agricultural Development Bank of China.
Gross domestic product rose 2.5 percent in all but the last month of 2014, following growth rates that tended to top 6 percent amid a mining boom over the previous decade.Growth data for December is scheduled for publication February 16.The central bank has said it expects inflation to ease into its 1-3 percent target range this month and to approach its goal of 2 percent mid-year.