China open to more interest rate cuts

China open to further interest rate cuts

China’s leadership and central bank are ready to cut interest rates again and also loosen lending restrictions, concerned that falling prices could trigger a surge in debt defaults, business failures and job losses, said sources involved in policy-making.

Friday’s surprise cut in rates, the first in more than two years, reflects a change of course by Beijing and the central bank, which had persisted with modest stimulus measures before deciding, last week, that a bold monetary policy step was required to stabilise the world’s second-largest economy.