News / Asia

China, Europe Cut Key Lending Rates

A 100 Euro banknote is placed on top of a 100 yuan banknote in this illustration taken in Beijing, November 7, 2010.A 100 Euro banknote is placed on top of a 100 yuan banknote in this illustration taken in Beijing, November 7, 2010.
x
A 100 Euro banknote is placed on top of a 100 yuan banknote in this illustration taken in Beijing, November 7, 2010.
A 100 Euro banknote is placed on top of a 100 yuan banknote in this illustration taken in Beijing, November 7, 2010.
VOA News
Two of the world's biggest economies - China and the 17-nation euro currency bloc - are cutting key lending rates in a new effort to boost their flagging economic fortunes.

The Chinese central bank Thursday cut its benchmark lending rate for the second time in a month, signaling that the world's second largest economy is slumping and faced with its biggest economic challenge since the 2008 worldwide recession. Beijing trimmed its one-year lending rate by nearly a third of a percentage point to 6 percent and said banks could offer even steeper discounts to borrowers.

China has offered numerous stimulus measures after its economic output dropped to a three-year low of 8.1 percent in the early months of the year. It has cut gasoline prices and promised more spending on low-cost housing and other public projects.   

Meanwhile, the European Central Bank cuts it key lending rate to a record low - down a quarter of a percent to three-quarters of one percent - as the eurozone economy contracts slightly.

In addition, the Bank of England moved to boost the British economy, which is outside the eurozone but deeply dependent on trading with its European neighbors. The British central bank pumped $78 billion into the country's recession-hit economy.

European Central Bank Chief Mario Draghi said inflation has stabilized in the eurozone at just below 2 percent, but economic growth in the region remains sluggish. "Inflationary pressure over the policy-relevant horizon has been dampened further as some of the previously identified downside risks to euro area growth outlook have materialized," he said.

"Consistent with this picture, the underlying base of monetary expansion remains subdued" he said. "Inflationary expectations for the euro area economy continued to be firmly anchored in line with our aim of maintaining inflation rates below, but close to two percent over the medium term," added Draghi. "At the same time, economic growth in the euro area continues to remain weak with heightened uncertainty weighing on confidence and sentiment."

The precarious financial state of debt-ridden Greece continues to be one of the eurozone's biggest economic problems. International auditors are in Athens to look at the government's progress in meeting the austerity pledges it agreed to as it secured a $168 billion bailout earlier this year, its second rescue package in two years.

New Greek Finance Minister Yannis Stournaras told reporters that some of the spending cuts it promised are "off track" and that the country faces "difficult years" in its recovery effort.

Some information for this report was provided by AP, AFP and Reuters.

You May Like

Ebola Death Toll Nears 5,000 as Virus Advances

West Africa bears heaviest burden; Mali toddler’s death raises new fears More

Jordan’s Battle With Islamic State Militants Carries Domestic Risks

Despite Western concerns that IS militants are preparing a Jordanian offensive, analysts call the kingdom's solid intel a strong deterrent More

Asian-Americans Assume Office in Record Numbers

Steadily deepening engagement in local politics pays off for politicians like Chinese-American Judy Chu More

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Talks to Resume on Winter Gas for Ukrainei
X
Al Pessin
October 25, 2014 4:21 PM
Ukrainian and Russian officials will meet again next week in an effort to settle their dispute over natural gas supplies that threatens to leave Ukraine short of heating fuel for the coming winter. VOA’s Al Pessin reports from London the dispute is complex, and has both economic and geopolitical dimensions.
Video

Video Talks to Resume on Winter Gas for Ukraine

Ukrainian and Russian officials will meet again next week in an effort to settle their dispute over natural gas supplies that threatens to leave Ukraine short of heating fuel for the coming winter. VOA’s Al Pessin reports from London the dispute is complex, and has both economic and geopolitical dimensions.
Video

Video Smugglers Offer Cheap Passage From Turkey to Syria

Smugglers in Turkey offer a relatively cheap passage across the border into Syria. Ankara has stepped up efforts to stem the flow of foreign fighters who want to join Islamic State militants fighting for control of the Syrian border city of Kobani. But porous borders and border guards who can be bribed make illegal border crossings quite easy. Zlatica Hoke has more.
Video

Video Comanche Chief Quanah Parker’s Century-Old House Falling Apart

One of the most fascinating people in U.S. history was Quanah Parker, the last chief of the American Indian tribe, the Comanche. He was the son of a Comanche warrior and a white woman who had been captured by the Indians. Parker was a fierce warrior until 1875 when he led his people to Fort Sill, Oklahoma, and took on a new, peaceful life. As VOA’s Greg Flakus reports from Cache, Oklahoma, Quanah’s image remains strong among his people, but part of his heritage is in danger of disappearing.
Video

Video China Political Meeting Seeks to Improve Rule of Law

China’s communist leaders will host a top level political meeting this week, called the Fourth Plenum, and for the first time in the party’s history, rule of law will be a key item on the agenda. Analysts and Chinese media reports say the meetings could see the approval of long-awaited measures aimed at giving courts more independence and include steps to enhance an already aggressive and high-reaching anti-corruption drive. VOA’s Bill Ide has more from Beijing.
Video

Video After Decades of Pressure, Luxembourg Drops Bank Secrecy Rules

European Union finance ministers have reached a breakthrough agreement that will make it more difficult for tax cheats to hide their money. The new legislation, which had been blocked for years by countries with a reputation as tax havens, was approved last week after Luxembourg and Austria agreed to lift their vetoes. But as Mil Arcega reports, it doesn’t mean tax cheats have run out of places to keep their money hidden.
Video

Video Kobani Refugees Welcome, Turkey Criticizes, US Airdrop

Residents of Kobani in northern Syria have welcomed the airdrop of weapons, ammunition and medicine to Kurdish militia who are resisting the seizure of their city by Islamic State militants. The Turkish government, however, has criticized the operation. VOA’s Scott Bobb reports from southeastern Turkey, across the border from Kobani.
Video

Video US ‘Death Cafes’ Put Focus on the Finale

In contemporary America, death usually is a topic to be avoided. But the growing “death café” movement encourages people to discuss their fears and desires about their final moments. VOA’s Jerome Socolovsky reports.
Video

Video Ebola Orphanage Opens in Sierra Leone

Sierra Leone's first Ebola orphanage has opened in the Kailahun district. Hundreds of children orphaned since the beginning of the Ebola outbreak face stigma and rejection with nobody to care for them. Adam Bailes reports for VOA about a new interim care center that's aimed at helping the growing number of children affected by Ebola.

All About America

AppleAndroid