China cuts benchmark lending rate for first time in nearly four years in attempt to reverse economic slowdown, by a quarter percentage point to 6.31%

Cindy Allen

BEIJING , June 7, 2012 (Associated Press) – China has cut its benchmark lending rate for the first time in nearly four years as it tries to reverse a sharp economic slowdown.

The Chinese central bank said Thursday the interest rate on a one-year loan will be reduced by a quarter percentage point to 6.31 percent effective Friday.

The rate cut adds to a string of measures in recent weeks to boost slowing economic growth.

Beijing has promised extra spending on public works and has approved a multibillion-dollar series of corporate investments to pump money into the economy.

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