China’s central bank reduces credit interest rate and reserve requirement ratio

China’s central bank announce on Monday it would reduce the benchmark loan interest rate and the reserve requirement ratio in order to ensure commercial banks to have a steady and rapid economic growth.
The benchmark interest rate for one year yuan denominated loans will be adjusted down 0.27 percentage points from Tuesday, it is also first downward movement since October 2004.
In addition, the People’s Bank of China announced the ratio of deposit lenders are required to set aside will be down 1 percentage point from Sept. 25.
The effect of the adjustment would show in the next two to three months, how the economy reacted would decide further actions , said.