Changing Course.

The article reports on the decision of the People's Bank of China on September 15, 2008 to cut the benchmark one-year loan interest rate to maintain sound economic development. Analysts interpreted the decision as a sign that the central bank is starting to loosen its control over credit in contrast with the stringent monetary policy it adopted in 2007. Commercial banks were also urged by the central bank to issue more loans to help finance small and medium-sized enterprises (SME).