Copper Rises as China Ending Loan-Rate Cap Seen Spurring Demand

Copper rose for a second straight day after China took steps to give banks more freedom to set borrowing costs, a sign that the government wants to spur economic growth in the world’s biggest metal-consuming country.

The People’s Bank of China said today it will remove the floor on lending rates offered by financial institutions and rural cooperatives. The central bank’s one-year benchmark rate has been held at 6 percent since the last reduction in July 2012. Copper prices were down 14 percent this year through yesterday on signs of slowing growth in China.