China cuts rates for fifth time in three months

China cut interest rates for the fifth time in three months to support the world’s fourth-biggest economy.

The key one-year lending rate will drop to 5.31 per cent from 5.58 per cent, the People’s Bank of China said on its Web site today.

The deposit rate will fall by the same amount to 2.25 per cent from 2.52 per cent. The changes are effective tomorrow.

It also cut the proportion of deposits that lenders must set aside as reserves by 50 basis points to 15.5 per cent from 16 per cent for big banks and to 13.5 per cent from 14 per cent for smaller ones.