China's Central Bank makes surprise interest rate cut

The People's Bank of China has cut interest rates for the second time this year. The bank cut the one-year Medium-Term Credit Facility interest rate by 10 basis points, contrary to market expectations. The People's Bank of China unexpectedly cut interest rates by 10 basis points for the second time this year and pulled some cash from the banking system on Monday to try to stimulate credit demand to support the COVID-19-hit economy. Economists and analysts said they believed Chinese authorities were willing to support the sluggish economy by allowing a widening policy divergence with other major economies that have been raising interest rates sharply.