China will cut interest rates as many as five times by the end of 2009 and will step up spending to limit the effect of the "global financial tsunami'' on the nation's economic growth, Morgan Stanley said. The central bank will cut borrowing costs by 27 basis points each time, reducing the one-year lending rate to as low as 5.85% next year from 7.2% now, Qing Wang, a Hong Kong-based economist, said in a note on Tuesday. Government spending may add as much as 3% points to economic growth, he said.
