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Chinese banks cut benchmark lending rates
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China's latest effort to shore up stalling growth has failed to impress. Commercial banks have trimmed their loan rates, but the cuts were smaller than anticipated. Traders too were underwhelmed, sending stocks lower and the yuan weaker following the announcement. The one-year loan prime rate was cut by 10 basis points to 3.55%. Most new and outstanding loans in China are based on this rate. The five-year rate -- which serves as a reference for the country's mortgage rate -- was reduced by the same magnitude to 4.2%. Many economists had predicted a bigger cut of 15 points.
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