China to ensure liquidity to spur ailing economy

Bloomberg
Posted: 2008-12-04 00:58:41+05:30 IST
Updated: Dec 04, 2008 at 0058 hrs IST

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: China will use interest rates, bank- reserve ratios and exchange rate measures to ensure “sufficient” liquidity in the banking system and ‘steady’ loan growth, the State Council said on Wednesday.

China will take steps to “activate banks' willingness to lend” to bolster economic growth, the cabinet said in a statement on the government's website. China's central bank on Nov. 26 cut its benchmark lending rate by the most in 11 years, two weeks after Premier Wen Jiabao announced a $586 billion stimulus package to spur growth in an economy that grew at its weakest pace in five years last quarter. The Chinese currency dropped 0.7% against the US dollar on December 1, the sharpest decline since the nation ended its fixed exchange rate in 2005.

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China to ensure liquidity to spur ailing economy

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