The People’s Bank of China cut the country’s one-year benchmark deposit rate by 25 basis points to 2.25% and the lending rate by the same amount to 5.1% following word that exports had declined 6.4% last month, South China Morning Post reported. The move, which took effect on Sunday, marks the third round of cuts since November. The rate cuts also came amid concern over growing deflationary pressure, as producers fell by 4.6% in April and consumer price inflation was only 1.5%. Analysts said banks were unlikely to offer rates at the maximum of 50% higher than the new benchmark to depositors.
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