China Reduces Interest Rates For First Time Since 2008

China has reported lowering her interest rates for the first time since 2008, the decision has been reported when there is fear as the Europe debt crisis increases.
People's Bank of China said on a statement reported on 7th June that China has lowered the 1-year yuan lending rate to 6.31% versus 6.66% and the one-year yuan deposit rate to 3.25% versus 3.50%.
Now Banks can offer a 20 percent discount to the key lending rate, up from a previous 10 percent, China’s central bank said yesterday. Lenders will, for the first time, be able to offer savers deposit rates that are up to 10 percent higher than the benchmark.

The deposit-ceiling move is “unprecedented” and a “milestone for interest-rate liberalization,” said Wang Tao, chief China economist at UBS in Hong Kong, who previously worked at theInternational Monetary Fund.