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It has been fine-tuning policies instead, speeding up spending on important projects, cutting the amount of cash banks must keep in reserve to free an estimated 1.2 trillion renminbi for lending and, in the space of four weeks in June and July, twice lowering benchmark lending rates.
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In September, the Fed lowered benchmark interest rates for the first time in four years, opening the second front in its economic stimulus campaign.
With that in mind while soliciting hopes for the coming year, it seemed prudent, albeit depressing, to assume we'd see some lowered benchmarks.
Lowering the benchmark price of money will make other assets more attractive.
The bank surprised investors this month by lowering its benchmark rate by a quarter of a percentage point to 5percentt.
The officials add that lowering the benchmark rate is not their only option for fighting economic weakness.
The Federal Reserve as much as admitted last week that lowering the benchmark interest rate — even to zero — would not be powerful enough medicine to revive today's ailing economy.
Fed officials believe the $600 billion action announced Wednesday will be similar to lowering the benchmark Federal funds rate by 0.75 percentage points.
Japan's central bank redoubled that effort Tuesday, lowering its benchmark interest rate to a range of 0 percent to 0.1 percent — a symbolic, if slight, edging down from the previous 0.1 percent.
Mr. Bernanke said the Fed had already done a great deal to help stimulate the economy — like lowering its benchmark interest rate to virtually zero in December — but that it still has "powerful tools" at its disposal.
Bond prices rose slightly, as analysts said the new data further increased the chance that the Federal Reserve would encourage more borrowing and spending by lowering its benchmark interest rate at least once more this year.
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