China Cuts Interest Rates

by Joe Oliver, Forex Trading-Pips

China cut interest rates today for the first time since 2008 in an attemp to combat the deepening economic slowdown brought on by Europe’s economic crisis. The PBOC announced on their website that the benchmark one-year lending rate will fall to 6.31 percent from 6.56 percent effective tomorrow and one year deposit rates will fall to 3.25 percent from 3.5 percent. Risk assets extended gains on the news with GBP.USD trading at 1.5593 shortly after the rate decision announcement.

GBP 60 minute bars

GBP 60 minute bars