BEIJING, OCT 21 – China’s central bank said today it has cut two key interest rates to record lows, in Beijing’s latest move to boost an economic slowdown.
The reduction came days after the country posted its slowest quarterly growth in a year and a half, underscoring the economic problems facing the country.
China’s leaders have targeted annual growth of 5 percent this year, but that goal has been hampered by a weak economy and a protracted debt crisis that has affected its large property sector.
The one-year Prime Loan Rate (LPR), which is the benchmark for the most advantageous rate that lenders can offer to businesses and households, was reduced from 3.35 percent to 3.1.
The five-year LPR, the benchmark for mortgage loans, was reduced from 3.85 to 3.6.
Both rates were last cut last July and are at all-time lows.
Data showed last Friday that the economy grew 4.6 percent in the third quarter, the slowest rate in a year and a half. – AFP
