China cutting its interest rate
By kingparker
@kingparker (9673)
United States
June 7, 2012 8:26pm CST
So, like the U.S. facing the economic recession, the Federal reserve bank slash the interest rate more than three times, trying to help boost up the economy, and also save the housing market. Making it easier for small businesses to borrow money from variety of banks. Such move also followed by Chinese Central bank as I read this news this morning. Is it an indication of China also in economic stagnant situation? Since the European slowdown on its economy, it might also affect other countries without doubt. Also, most Chinese products export to Europe, as one of their biggest client. So, such interest cut from Chinese central bank telling us, China also facing economic slowdown? How do you see about this?
3 responses
@baidu131 (2)
• China
24 Jun 12
Yes,China is facing a serious slowdown.China's economy is a outward one,which heavily
depends on export.What's more,because of government's regulation, the pillar industry-housing market-is in the recession.
Fearing to cause a deepen inflation,the government trys to aviod vast stimulus,so the government chooses to cut its interest rate.
@petersum (4522)
• United States
8 Jun 12
China holds more US Dollars than the United States so it isn't surprising that they have some economic troubles. Afterall, the Dollar is almost worthless no matter whose pocket it is in!
China has to import many items, obviously paid for in US Dollars.
Whatever their banks decide on interest rates has little to do with recession or slowdowns.
China stands alone and above the rest of the world economically.
