(MENAFN) The People's Bank of China reduced benchmark deposit rates by 25 basis point and lending rates by 31 basis points, reported Xinhua News.
The cut, the second in a month, aims at bolstering the economy, which is weakening more than expected.
The bank also gave permission to commercial banks to set the interest rates charged on their loans at or more than 70 percent of the government's benchmark rate, compared with the previous 80 percent.
It is worth noting that according to the People's Bank of China, the limits for rates charged on individual property loans will not be changed and financial institutions will have to realize differentiated policies on property loans to maintain restraints on speculative purchases.
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