Bank of China Pushes the Stock Market Booster Again

Another week, another effort by the Chinese authorities to boost the economy. This time the People’s Bank of China (PBOC) lowered its benchmark interest rate by 0.25 percent to 5.10 percent.

A woman stands in front of a toy display in Hong Kong, Feb. 13, 2015. Chinese companies have been churning out too much merchandise, leading to falling prices—and a worried central bank. PHILIPPE LOPEZ/AFP/Getty Images

Another week, another effort by the Chinese authorities to boost the economy. This time the People’s Bank of China (PBOC) lowered its benchmark interest rate by 0.25 percent to 5.10 percent.

This is different from the cut in the Required Reserve Ratio (RRR) from a few weeks ago, but it’s for the same reason.

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• What Is the RRR and Why Does It Make Chinese Stocks Go Up?
• On the Ground Data Confirms China Slowdown