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Article: China likely cuts interest rates by up to 81 basis points in 2009: UBS
- Article from:
- Xinhua News Agency
- Article date:
- January 29, 2009
CopyrightCopyright 2009 Xinhua News Agency. Provided by ProQuest LLC. (Hide copyright information)
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China likely cuts interest rates by up to 81 basis points in
2009: UBS
BEIJING, Jan. 30 (Xinhua) -- China may cut interest rates by 54-
81 basis points in 2009 in an effort to ease deflationary pressure
and spur growth, UBS said in a recent note.
Deflation is by far the bigger threat in China this year although
many have voiced concerns of a rapid return to inflation due to the
massive liquidity injection, a surge in bank lending and the fiscal
stimulus, the bank said.
It forecasted that China's consumer prices will fall in the first
few months of 2009, partly due to the high base effect.