China cut key lending rates again on Monday, one week after cutting interest rates in a surprise move.
These moves come in an attempt to revive demand for credit and ignite the economy affected by the extended shutdown of the Covid virus and property debt problems, Al Arabiya.net reported.
The People's Bank of China lowered the 5-year basic loan rate by 15 basis points to 4.30% from 4.45%, and lowered the one-year basic loan rate, known as the LPR, by 5 basis points to 3.65%.
Most of the new loans in China are based on the one-year lending rate.
Last week, China's central bank lowered the one-year Medium Term Lending Facility (MLF) loan rate for some financial institutions by 10 basis points. It also cut the 7-day reverse repo rate by 10 basis points to 2%.
