China's Central Bank Cuts Rates to Boost Slowing Economy

China's central bank has announced the first cut in interest rates since 2008.

 

The central bank plans to decrease the benchmark interest rate for deposits and loans by 25 basis points--a quarter of one percent--beginning Friday. The same amount will drop from the one-year deposit rate.

 

This move comes as China projects a harsher economic slowdown than initially projected in its second quarter results. 

 

China's GDP growth has dropped to a nearly three-year low of 8.1 percent in the first quarter. Key economic indicators for May, like manufacturing data, suggest a continued slowdown for the economy.