On Monday, China's central bank cut a benchmark interest rate after taking similar action last week, seeking to support sluggish growth and stimulate activity in the world's second-largest economy.
The interest rate on loans granted for one year, which is a reference for bank loans to companies and families, was reduced from 3.55 percent to 3.45 percent.
The central bank cut this interest in June.
On the other hand, the Central Bank did not amend the interest rate on mortgage loans, which remained at 4.2 percent.
These two market reference ratios are at their lowest historical levels.
The decision, which the markets were anticipating, aims to encourage commercial banks to grant more loans at better interest rates, which will thus allow support for activity in light of the economic slowdown.
The Central Bank took this step while the world's major economic powers raise interest rates to curb inflation.
The decision was issued after a meeting held on Friday between the Central Bank and the financial regulators, during which it was agreed on the need to provide greater support to the economy and reduce hidden risks, according to what the official media reported on Sunday, without specifying the nature of these risks.
After recording a post-Covid recovery as a result of the lifting of health restrictions at the end of 2022, growth has begun to slow in China in recent months, while the real estate sector is facing an acute crisis.
Country Garden Real Estate Development Company, which has long been considered financially solid, suffers from huge debts that raise fears that it will default on payments, which will affect the financial system in China , two years after its competitor Evergrande failed to pay its dues.
In its effort to stimulate the economy, the Chinese central bank cut Tuesday the interest rate on medium-term loans granted to financial institutions.
