The country's central bank slashes interest rates for the fifth time since November as markets fret on its economic health.
China has cut core interest rates in a renewed bid to stimulate its slowing economy and help arrest a sell-off of Chinese stocks.
It is the fifth time in nine months that the People's Bank of China (PBoC) - the country's central bank - has slashed borrowing costs and loan rates.
The move follows a crash in values on domestic Chinese stock markets.The collapse in investor confidence spilled over onto world stock indices, resulting in two days of sharp selling though values in Europe have recovered well on Tuesday.
That rally was extended in Europe when news broke of the PBoC's intervention.
The central bank said the benchmark rate for a one-year loan would be cut by 0.25 percentage point to 4.6% and the one-year rate for deposits would fall by a similar margin to 1.75%.
It also increased the amount of money available for lending by reducing the minimum reserves banks are required to hold by 0.5%.
The moves had been anticipated by financial analysts after exports, manufacturing and other economic indicators weakened by larger margins than expected in the latest data round.
It has deepened fears that the slowdown in the world's second-largest economy is more entrenched than official statistics suggest.
China's economic growth has been a strong driver of recovery in the west since the financial crisis.
China has cut core interest rates in a renewed bid to stimulate its slowing economy and help arrest a sell-off of Chinese stocks.
It is the fifth time in nine months that the People's Bank of China (PBoC) - the country's central bank - has slashed borrowing costs and loan rates.
The move follows a crash in values on domestic Chinese stock markets.The collapse in investor confidence spilled over onto world stock indices, resulting in two days of sharp selling though values in Europe have recovered well on Tuesday.
That rally was extended in Europe when news broke of the PBoC's intervention.
The central bank said the benchmark rate for a one-year loan would be cut by 0.25 percentage point to 4.6% and the one-year rate for deposits would fall by a similar margin to 1.75%.
It also increased the amount of money available for lending by reducing the minimum reserves banks are required to hold by 0.5%.
The moves had been anticipated by financial analysts after exports, manufacturing and other economic indicators weakened by larger margins than expected in the latest data round.
It has deepened fears that the slowdown in the world's second-largest economy is more entrenched than official statistics suggest.
China's economic growth has been a strong driver of recovery in the west since the financial crisis.
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