PBoC cuts interest rates for some short-term lending

China’s central bank has lowered the interest rates it charges commercial lenders using a special short-term lending tool from 5% to 4.5% for overnight interest and from 7% to 5.5% for its seven-day rate, The Wall Street Journal reported, citing two unnamed sources. The move to lower borrowing costs for businesses comes only days after the People’s Bank of China cut its benchmark lending and deposit interest rates by 0.25%. However, interest rates in the interbank or money market fell only slightly after the move, suggesting the authorities need to do more, analysts said.