China’s central bank cuts interest rates due to market slump

The BBC reports:

The People's Bank of China has cut interest rates in an effort to boost growth in its economy. Image by: David Castillo Dominici

The People’s Bank of China has cut interest rates in an effort to boost growth in its economy.
Image by: David Castillo Dominici

“The People’s Bank of China cut its key lending rate by 0.25 percentage points to 4.6% in an effort to calm stock markets after two days of turmoil.

It is the fifth interest rate cut since November and will take effect on Wednesday.

The move has boosted global share prices further, with London’s FTSE 100 jumping 3%, while Germany’s Dax gained 5% and the Paris Cac rose by 4.1%.

Other European markets, including Lisbon, Madrid, Moscow and Milan, all closed sharply higher.

But Wall Street bucked the trend. Having initially surged all three main stock indexes in the US reversed sharply in the final hour of trading.”

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