Central Bank decided from Dec. 23rd, 2008 to cut one-year loan and deposit benchmark rate and the bench rate of other levels’ loan and deposit will be adjusted accordingly. At the same time, the central bank cut re-loan rates and rediscount rates. From Dec.25th, the reserve ratio of finance institution was cut by 0.5 percentage points.
It was the fifth time that the central bank has cut rates since September this year and the fourth time that the central bank cut the deposit reserve rate and it was the third time that the two rates were both cut at the same time since the central bank announced the two rates both cut on Oct. 8th.The central bank announced that the move is to implement the flexible money policy.(Dec 20th 2008)