China Announces Economic Stimulus Package

China’s central bank has unveiled a major package of measures aimed at reviving the country’s flagging economy.

The measures include the lowering of borrowing costs and permitting banks to increase their lending.

The move comes after a series of disappointing data increased expectations in recent months that the world’s second largest economy will miss its own 5 per cent growth target this year.

Stock markets in Asia jumped after the announcement.

At a rare news conference, the central bank announced it would cut the amount of cash banks have to hold in reserve, known as reserve requirement ratios, RRR.

The RRR will initially be cut by half a percentage point, in a move expected to free up about US $142 billion.

Further measures aimed to boost China’s crisis-hit property market include cutting interest rates for existing mortgages and lowering minimum down payments on all types of homes to 15 per cent.