Chinese policy-makers to cut rates again, source claims
Chinese authorities are reportedly set to once again cut their interest rates amid widespread concerns over a drop in prices.
The news comes after Friday saw an unexpected rate cut in the world's second-biggest economy, reflecting a significant change in strategy in a bid to improve the country's weakening housing market and prevent its economic growth rate from dropping below 7%.
According to an unnamed senior economist quoted by Reuters, the country's "top leaders have changed their views" and the People's Bank of China has now moved its focus towards broad-based stimulus.
The economist, who works at a government think-tank involved in internal policy discussions, said additional interest rate cuts "should be in the pipeline as we have entered into a rate-cut cycle".
The source also said that reserve requirement ratio (RRR) cuts, the last of which was seen in May 2012, were "also likely".
Chinese powers on Friday cut the country's one-year benchmark lending rates to 5.6%, marking a drop of 40 basis points.