Bloomberg News

China May Take More Steps to Ease Liquidity, Morgan Stanley Says

July 05, 2012

Helen Qiao, the chief China economist at Morgan Stanley, comments on China’s second interest-rate cut in a month.

The People’s Bank of China said today the one-year lending rate will fall by 31 basis points and the one-year deposit rate will drop by 25 basis points effective tomorrow. Banks can offer loans of as much as 30 percent less than benchmark rates, the central bank said on its website.

“We believe the rate cut was triggered by the faster-than- expected fall in CPI inflation.”

“We are expecting more quantitative measures to help ease the liquidity in the system in the near future.”

To contact the reporter on this story: Bloomberg News in Beijing at lzheng32@bloomberg.net

To contact the editor responsible for this story: Shiyin Chen at schen37@bloomberg.net


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