China cuts interest rates in new bid to spur economy

China has cut interest rates for fifth time in nine months in a new effort to shore up slowing economic growth.

The central bank said Tuesday said the benchmark rate for a one-year loan will be cut by 0.25 percentage point to 4.6 per cent and the one-year rate for deposits will fall by a similar margin to 1.75 per cent.

The bank also increased the amount of money available for lending by reducing the minimum reserves banks are required to hold by 0.5 percentage point.

The moves had been anticipated by financial analysts after exports, manufacturing and other economic indicators weakened by larger margins than expected.