While the Dragon's economy is slowing down, the Chinese central bank has decided to lower some reference rates such as the one on overnight deposits which drops to 2,75% from 4%. Rates on short-term deposits, such as 7-day deposits, also fell, which was reduced from 5,5% to 3,25%.
The moves of the Central Bank of China will be effective from Friday, November 20th. Beijing's decisions represent an expansive move in monetary policy while the dragon's economy has been affected by a generalized weakening for many months.
