China's interest rate cuts not start of QE: economists

Beijing

CHINA'S central bank cut interest rates starting on Monday in the face of inflationary pressure and economic headwinds, but experts say the step should not be interpreted as the start of quantitative easing (QE).

The People's Bank of China (PBOC) on Sunday announced it will cut the benchmark deposit and loan interest rates by 25 basis points. After the move, the third rate cut in six months, the one-year deposit rate stands at 2.25 per cent, and the one-year lending rate at 5.1 per cent.

China's consumer price index (CPI) edged up to 1.5 per cent in April, but came in below market expectations. The producer price index (PPI), a measure of c…