The People’s Bank of China has cut interest rates for the third time in six months in a bid to boost the economic growth and lower companies' borrowing costs.
Analysts welcomed the decision of the central bank, but they expect the PBOC to ease reserve requirements and cut rates again in the nearest term.
The regulator lowered its one-year lending rate by 25 basis points to 5.1%. The benchmark deposit rate was cut by the same amount to 2.25%.
“China's economy is still facing relatively big downward pressure. At the same time, the overall level of domestic prices remains low, and real interest rates are still higher than the historical average,” the People’s Bank of China made a comment.
