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Global Economy Watch - April 2015 

Slowing growth and low inflation but China still has room for manoeuvre

In China, inflation is currently considerably short of the government’s new 3% target with the latest data showing an inflation rate of just 1.4%. To combat this, the PBoC has further reduced the one-year benchmark loan interest rate and the deposit interest rate by 0.25 percentage points to 5.35% and 2.5% respectively. Similar adjustments have also been made to benchmark interest rates on deposits and loans of other maturities.

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