China Cuts Benchmark Lending Rates

China's benchmark lending rates were lowered by 10 basis points, after the nation's central bank cut its policy rate to stimulate domestic demand.

The one-year loan prime rate was lowered to 3.0% and the five-year rate was reduced to 3.5%, the People's Bank of China said Tuesday, citing a result of biddings by the nation's major banks.

Before the benchmark rate cut, the PBOC lowered the interest rate on the seven-day reverse repurchase agreement by 10 basis points earlier this month.

This marked the first cut to benchmark lending rates for the year, following a series of monetary-easing measures by Beijing--reductions to rates on other lending facilities and liquidity injections--to boost domestic demand, before surprising markets with a trade deal with Washington.

Also on Tuesday, China's four biggest state-owned banks said they would lower deposit rates by up to 25 basis points.

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