He central bank of china announced on Monday that it cut two benchmark interest rates in search of stimulating weak consumption in the second largest economy in the world.
The one-year prime rate (LPR), which serves as a benchmark for the most favorable loan rates for businesses and households, was reduced from 3.35% to 3.1%.
The five-year LPR, a benchmark for mortgage loans, was cut from 3.85% to 3.6%.
Both rates They had already been reduced in July.
The cuts come after China posted its slowest quarterly growth in a year and a half in September, highlighting the country’s economic difficulties.
Authorities aim for 5% annual growth in 2024, but that goal seems difficult due to weak consumption and the persistent crisis in the real estate sector, which was considered an engine of the economy.
