China central bank says cuts two key rates to support economy

China's central bank on Monday cut two benchmark interest rates in a bid to boost lagging growth in the world's second-largest economy.

The one-year LPR, which constitutes the benchmark for the most advantageous rates that banks can offer to businesses and households, was cut from 3.45 percent to 3.35 percent. This rate had already been lowered in August 2023.The five-year rate, the benchmark for mortgage loans, was lowered from 3.95 percent to 3.85 percent.

This is its second reduction this year after a trim in February.Closely followed by the markets, these two rates are at their historic lows and the cuts come days after of a key ruling Communist Party meeting in Beijing.The measure is expected to indirectly support activity against a backdrop of economic slowdown.