The People’s Bank of China (PBOC), China’s central bank, has decided to cut benchmark interest rates effective as of October 24, following the previous interest rate cut made on August 25 this year.
Accordingly, the one-year lending rate has been reduced by 0.25 percentage points to 4.35 percent, while the one-year deposit interest rate has been cut by 0.25 percentage points to 1.5 percent. In addition, the lending rate for between one year and five years (including five years) and the lending rate for more than five years stand at 4.75 percent and 5.00 percent, respectively.
Meanwhile, China's central bank has announced its decision to lower the reserve requirement ratio (RRR) - the minimum level of deposits banks must hold - by 0.5 percentage points for banks who’s lending to small businesses and the agricultural sector meets the regulators’ targets.