China’s central bank cuts rates and could keep cutting

BBC reports that China “lowered its benchmark rate by 25 basis points to 5.1%, saying the move was aimed at boosting development.” While the WSJ reports that “People with knowledge of the discussions say China’s policy makers are increasingly concerned that Beijing may fall short of reaching its already-lowered expectations for growth—set at about 7% for this year, the lowest level in about a quarter-century.” Li Huiyong, an economist at Shenwan Hongyuan Securities, said: "This won't be the last cut. "The rate could be lowered to 2% at least, and we expect the economy to gradually stabilise in the coming two quarters."