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Further Stimulus And Easing From China

|Includes: CHIX, iShares China Large-Cap ETF (FXI)

Just today, the People's Bank of China (PBOC) announced that it cut both the benchmark deposit and lending rate by 25 basis points in what is a further sign of easing from China. The 1-year lending rate is now 6.31% and the 1-year deposit rate is now 3.25%.

This reduction, the first implemented by China since 2008, follows other stimulus measures that China has implemented. Moreover, China has also delayed the tightening of bank capital rules to 2013 and is now allowing banks to offer loans at a 20% discount from the benchmark rate (before was 10%).