China cuts interest rates for the third time in six months.
China's central bank announced on its website that it lowered its benchmark one-year lending rate by 0,25 percentage points to 5,1 percent, effective March 11. It also cut its benchmark deposit rate by 0,25 percentage points to 2,25 percent. "China's economy is still facing relatively significant downward pressure," the central bank said in a separate statement.
By Michael Martina and Judy Hua
BEIJING (Reuters) - China cut interest rates for the third time in six months on Sunday in an attempt to lower borrowing costs for businesses and fuel an economy expected to have its worst year in 25 years.
China's central bank announced on its website that it lowered its benchmark one-year lending rate by 0,25 percentage points to 5,1 percent, effective March 11. It also cut its benchmark deposit rate by 0,25 percentage points to 2,25 percent.
"China's economy is still facing relatively significant downward pressure," the central bank said in a separate statement.
"At the same time, the overall level of domestic prices remains low, and interest rates are still higher than the historical average," he added.
Sunday's decision came just days after the release of weaker-than-expected April trade and inflation data, highlighting that the world's second-largest economy is under persistent pressure from weak domestic and external demand.
Economists had already said it was not a question of if, but when China would loosen monetary policy again after economic growth in the first quarter slowed to 7 percent, a level not seen since the peak of the 2008/09 global financial crisis.