China's central bank cut its key short-term policy rate Monday amid a prolonged property-sector crisis after slower-than-expected growth in the second quarter of this year.
The People's Bank of China said it has lowered the interest rate on seven-day reverse repos, the key policy rate, from 1.8 percent to 1.7 percent, to "better support the real economy." It was the first cut in the rate since August last year.
The world's second-largest economy posted a real 4.7 percent rise in gross domestic product in the April-June period from a year earlier, official data showed last week, decelerating from 5.3 percent in January-March and coming in below market expectations of a 5.1 percent expansion.
The central bank also lowered Monday the one-year loan prime rate, the benchmark lending rate, by 0.10 percentage point to 3.35 percent, following a cut in August 2023.
The five-year loan prime rate, which serves as the benchmark mortgage interest rate, was also trimmed by 0.10 point to 3.85 percent after a reduction in February.
China has set a growth target of around 5 percent for 2024 but its economy has faced challenges including the real estate sector crisis, weak demand, mounting local government debts and trade disputes with Western countries.
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