SHANGHAI — With its growth engine slowing, China said on Saturday that for the second time in three months it was reducing the nation’s benchmark interest rates.
In an announcement on its website, China’s central bank said that, effective Sunday, the one-year bank lending rate would drop by 0.25 percentage points to 5.35 percent and that deposit rates would also be reduced by a quarter percentage point.
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Last November, for the first time in two years, the government reduced interest rates. In February, it lowered the reserve requirement ratio, allowing banks to lend a larger share of their assets. Saturday’s move to cut rates again is an effort to reduce corporate debt burdens and financing costs for borrowers and home buyers.
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