China cut interest rates as expected, following other rate cuts last month as part of a package of stimulus measures to revive the economy.
The People's Bank of China (PBOC) decided to cut its key one-year lending rate to 3.1 percent from the previous reading of 3.35 percent.
The prime rate for loans of more than five years, which many lenders base their mortgage rates on, was cut to 3.6 percent from 3.85 percent, according to the National Interbank Finance Center.
Lending rates were last cut in July.
People's Bank of China Governor Pan Gongsheng said at a financial forum last week that lending rates will be cut by 20 to 25 basis points on Oct. 21.
The People's Bank of China announced cuts to banks' reserve requirement ratios by 50 basis points and the benchmark seven-day reverse repurchase rate by 20 basis points on Sept. 24, unleashing the strongest stimulus since the pandemic that includes measures to support the struggling property sector and boost consumption.
Chinese authorities have sharply ramped up stimulus measures since late September, with the CSI300 index breaking records for average daily moves and rising more than 14 percent overall. The yuan has also fallen 1 percent against the dollar in that period.
But markets are awaiting more details on the size of the stimulus package and a clearer roadmap for restoring the economy's long-term resilience.
China's economy grew at its slowest pace since early 2023 in the third quarter, and although consumption and industrial production data came in better than expected last month, the struggling property sector remains a major challenge for Beijing as it struggles to revive growth.
Official data showed the world's second-largest economy grew 4.6 percent in the July-September period, slightly beating analysts' expectations in a Reuters poll for 4.5 percent growth, but slowing from a 4.7 percent pace in the second quarter.
Officials expressed confidence at a news conference after the GDP data was released that the economy could meet the government's full-year growth target of around 5 percent, with more supportive policies and another cut in the amount of reserves that banks can hold.
A Reuters poll showed that gross domestic product is likely to grow by 4.8 percent in the full year, below the government's target, and growth is expected to slow to 4.5 percent in 2025.
