China's central bank to keep interest rates stable

[HONG KONG] China's central bank said on Friday it will keep interest rates stable and steadily push forward the internationalisation of its yuan currency, after it cut the amount of cash that banks must hold as reserves for the fifth time in the past year.

China will also resolve risks in its financial sector, such as shadow banking and bond defaults, the People's Bank of China said in a statement on its website www.pbc.gov.cn.

Earlier on Friday, the central bank said it was cutting the reserve requirement ratio to free up US$116 billion for new lending as it tries to reduce the risk of a sharper economic slowdown.

REUTERS