China’s central bank said on Saturday it would cut benchmark interest rates by 25 basis points to 5.35 percent, a widely expected move as the world’s second-largest economy continues to show signs of weakness despite previous easing measures.
The central bank said it would also cut the benchmark saving rate by 25 basis points to 2.5 percent. The cuts will come into effect on Sunday, according to the statement.
“The focus of the interest rate cut is to keep real interest rate levels suitable for fundamental trends in economic growth, prices and employment,” the People’s Bank of China (PBOC) said in a separate statement on its website. “This does not represent a change in the direction of monetary policy.”
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