LONDON, July 5 (UPI) -- Central banks in China and Germany cut their benchmark lending rates Thursday, while the Bank of England kept its rate at 0.5 percent.
The Peoples Bank of China lowered the wholesale, bank-to-bank lending rate from 6.31 percent to 6 percent in an effort to stimulate the economy.
The bank also loosened some lending restrictions to make funds not only cheaper, but easier to get.
In Germany, the European Central Bank cut its rates from 1 percent to a low of 0.75 percent.
Many of Europe's economies are expected to be in recession this year. In a recent report, Eurostat said that producer prices fell in May after remaining unchanged in April. Falling prices can push economies into deflation, a period in which consumers and businesses hesitate to buy, expecting waiting will bring better prices.
In London, policymakers at the Bank of England said their overnight lending rate would be left intact at 0.5 percent.
The BOE explains its policy decisions in meeting minutes released three weeks after meetings are held.
