Another China Rate Cut Likely

China’s leadership and central bank are ready to cut interest rates again and also loosen lending restrictions, concerned that falling prices could trigger a surge in debt defaults, business failures and job losses, sources say. Friday’s surprise cut in rates reflects a change of course by Beijing and the central bank, which had persisted with modest stimulus measures before finally deciding last week that a bold monetary policy step was required to stabilize the world’s second-largest economy, Reuters reported. Economic growth has slowed to 7.3% in the third quarter and policymakers feared it was on the verge of dipping below 7% - a rate not seen since the global financial crisis.