China slashed interest rates for the third time in six months over the weekend in a bid to boost lending to businesses, adding stimulus to a slowing economy. The People’s Bank of China on Saturday cut both benchmark lending and deposit rates by 25 basis points to 5.1% and 2.25%, respectively.
The bank had cut rates previously in March. Prior to that, the bank lowered its lending rate in November for the first time in more than two years. The latest reduction in interest rates is aimed to ease the funding costs for business to promote economic development as the country continues to face relatively big downward pressure, the PBoC said.
China’s economic growth had eased to 7% in the first quarter, the weakest pace in six years, from 7.3% in the previous three months. Click here to read more.