MOSCOW (Sputnik) — The move comes as Chinese stock indexes continued to tumble, shedding more than 7 percent to hit their lowest levels since December 2014, following their more than an 8-percent nosedive on Monday.
The People’s Bank of China (PBOC) has set the one-year deposit rate at 1.75 percent, while the loan rate will be 4.6 percent.
The bank also plans to cut the cash reserve ratio by 0.5 percent to 18 percent for most big banks, according to the statement. The change will come into effect on September 6.
China is striving to reach its planned goal of 7-percent growth in GDP in 2015 amid rising concerns over the slowdown in the Chinese economy.
This is the fifth decrease in lending rates since November 2014, according to the PBOC statement.
