China's central bank on Monday cut a key interest rate in an attempt to counter the post-Covid growth slowdown in the world's second-largest economy.
The one-year loan prime rate, which serves as a benchmark for corporate loans, was reduced from 3.55 percent to 3.45 percent, the People's Bank of China (PBoC) said in a statement, while the five-year LPR, which is used to price mortgages, was held at 4.2 percent.
Closely followed by the markets, the two rates are now at historic lows, after previous reductions in June.
The decision is intended to encourage commercial banks to grant more loans and at more advantageous rates.
Monday's measures -- which run counter to rising interest rates around the world as other major economies work to curb inflation -- will indirectly support economic activity as China's growth flags.
The long-awaited post-Covid recovery following the lifting of health restrictions at the end of 2022 has run out of steam in recent months.
To reinvigorate the economy, the central bank reduced the rate for its medium-term lending facility (MLF) to financial institutions last Tuesday.
(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)
Featured Video Of The Day
8 Indians Among 9 Rescued By Navy After Oil Tanker Capsizes Off Oman
Did A Massive Dam In China Alter Earth's Rotation? The Truth Behind Viral Claim China Can't Defeat US If We Revive "American Dream": Vivek Ramaswamy 16 Killed, 30 Rescued After Fire At China Shopping Centre: Report Barack Obama Wants Joe Biden To Pull Out Of US Presidential Race: Report World's Largest Isolated Tribe Makes Rare Appearance In New Footage 32 Dead In Bangladesh Unrest, Protesters Set Fire To State TV Headquarters Comedy Legend Bob Newhart Dead At 94: Publicist Israeli Strike Kills Field Commander In Elite Hezbollah Unit: Report Delhi-San Francisco Air India Flight Diverted To Russia After Engine Glitch Track Latest News Live on NDTV.com and get news updates from India and around the world.