China's central bank lowered its key interest rates on Monday, a measure taken for the first time since October 2024, Reuters reported, BTA reports.
The decision aims to ease lending and boost domestic consumption as the world's second-largest economy continues to face a slowdown in growth.
The measure is expected to have a positive effect on the Chinese economy, which is also under pressure from ongoing trade tensions with the United States, caused by high tariffs on imports.
The People's Bank of China (PBOC) announced that it is lowering the one-year lending rate (LPR) by 10 basis points to 3.00% and the five-year rate to 3.50%.
The one-year rate directly affects most consumer and business loans, while the five-year rate is key to mortgage lending, CNBC notes.
The announcement of a reduction in lending rates comes shortly after five of China's largest state-owned banks announced they were also cutting interest rates on their deposits, a move also aimed at boosting consumption and investment in the country.