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China Swap Rate Drops to Lowest Since 2012 on Reserve-Ratio Cut

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China’s interest-rate swaps declined to the lowest level since 2012 after the monetary authority cut the amount of cash banks must set aside as reserves in an effort to boost economic growth.

The People’s Bank of China reduced the main reserve-requirement ratio by 1 percentage point effective Monday, according to a statement on its website posted Sunday. The reduction, the biggest since the global financial crisis, brings the level down to 18.5 percent for large lenders, and lower for rural financial institutions. Data last week showed gross domestic product expanded 7 percent in the January-March quarter, the slowest pace since 2009.