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China cuts interest rates to boost growth

7 June 2012 Last updated at 23:11 BST

China has cut its key interest rates for the first time since 2008, in an attempt to boost its slowing growth.

The People's Bank of China has also given banks flexibility to offer higher rates to savers and lower rates to borrowers.

In addition, China has delayed the implementation of tougher bank capital rules amid concerns that they may hurt lending.

Damian Grammaticas reports from Beijing.