Further easing seen as China rate cut signals policy shift

SHANGHAI: After months of modest stimulus actions to try to keep the world’s second largest economy on track, China has fallen back on one of the strongest weapons in its arsenal—an interest rate cut—and analysts say more easing is on the way.

In the first such move in more than two years, China’s central bank cut the benchmark one-year lending rate by 0.40 percentage points to 5.60 percent and trimmed the one-year deposit rate by 0.25 percentage points to 2.75 percent.