China cuts interest rates by 25 bps to support economy

This has been the fourth reduction since November

China's central bank cut its benchmark lending rates by 25 basis points to 4.85% on Saturday, the fourth reduction since November, as it gears up to lower borrowing costs and support a slowing economy.

The People's Bank of China (PBOC) also reduced one-year benchmark deposit rates by 25 basis points to 2%, it said in a statement on its website, adding that the reductions would take effect on Sunday.

The PBOC last cut interest rates on May 10, lowering one-year benchmark lending rates by 25 basis points to 5.1%, and lowering one-year benchmark deposit rates by 25 basis points, to 2.25%.

Weighed down by a property downturn, factory overcapacity and local debt, growth in China's economy is expected to slow to a quarter-century low of around 7% this year. That is down from 7.4% in 2014, even with expected additional stimulus measures.

While more cuts had been expected as economic growth sputters, Saturday's changes follow a plunge of 20% in China's stock market in the last two weeks.