Central bank cuts interest rate sharply and launches 4 trillion yuan bailout package

by liufeng51396 on 2008-11-29 16:22:08

The central bank cut interest rates sharply and launched a 4 trillion RMB rescue plan. Industry insiders believed that the government's aggressive rate cuts and active fiscal policies would stimulate the housing market to rebound, release residents' pent-up rigid demand for home purchases over nearly a year, and China's property market was brewing a major reversal.

I am not quite understanding of economics. There are mixed opinions on this rate cut, but I think that in such an economic downturn, the resolutions issued by the government should be to lead the people through the winter.