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Comments on China's huge interest rate cut Wednesday
By Xin Zhiming and Wang Bo  (China Daily)
Updated: 2008-11-26 20:48

Special coverage:
Interest Rate Cut
Coping with Financial Crisis 

Comments on China's huge interest rate cut Wednesday

Ma Ming

: economist, Beijing Institute of Technology

The surprisingly big cuts in interest rates are due to the exceptionally fast slowing of the economy. Economic growth in the fourth quarter could be very worrying. In the southern and eastern regions, the trend of capital exodus has become rather obvious as the economic growth slows.

The government must prevent financial institutions from incurring large amounts of bad loans as the property market confidence weakens. And certainly today's cuts would not be the last for the year.


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