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A symbolic interest rate cut

China’s central bank supplements the government’s current economic stimulus program (China.Table reported) by lowering certain interest rates. The move came as a surprise: Just a few days ago, experts were primarily expecting a decrease in liquidity in the financial system. An interest rate cut generally has the opposite effect. It makes loans cheaper and easier to acquire for companies. So analysts were surprised on Monday by the decision of the People’s Bank of China (PBoC).

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