{"id":52170,"date":"2015-08-25T05:07:31","date_gmt":"2015-08-25T11:07:31","guid":{"rendered":"http:\/\/www.businesspundit.com\/?p=52170"},"modified":"2020-09-21T13:33:53","modified_gmt":"2020-09-21T17:33:53","slug":"china-cuts-interest-rates-as-stocks-tumble-yet-again","status":"publish","type":"post","link":"https:\/\/www.businesspundit.com\/china-cuts-interest-rates-as-stocks-tumble-yet-again\/","title":{"rendered":"China Cuts Interest Rates As Stocks Tumble Yet Again"},"content":{"rendered":"

\"China<\/a><\/h1>\n

The People\u2019s Bank of China cut interest rates by 25 basis points (0.25 percent) on Tuesday after the country\u2019s benchmark Shanghai Composite index fell another 7.6 percent.<\/p>\n

But in a sign that world markets are adjusting to the bad news in China, stocks elsewhere rebounded. London\u2019s fuse 100 was up 2.9 percent, in what The Guardian<\/em><\/a> dubbed Turnaround Tuesday, and both Dow and S&P futures are sharply up ahead of trading in the United States.<\/p>\n

China\u2019s official Xinhua<\/a> news service called it \u201canother nightmarish day\u201d of trading, notably tying the chaos to a global phenomenon: \u201cInvestors have been rattled by an exodus of capital from emerging markets to the United States as its interest rate hike is expected as early as September.\u201d<\/p>\n

Meanwhile, China\u2019s central bank decided to lower interest rates to boost \u201clong-term liquidity,\u201d the latest in a summer of attempts to prop up the flagging economy. It\u2019s also the fifth rate cut in the last year.<\/p>\n

\n

China’s interest rate move is its fifth cut this year, after a long period of stability http:\/\/t.co\/ke1kXAAoEE<\/a> pic.twitter.com\/zLlYpMJtaL<\/a><\/p>\n

\u2014 Bloomberg Business (@business) August 25, 2015<\/a><\/p><\/blockquote>\n