China cuts key rates to boost flagging economy

China's central bank on Monday cut benchmark loan rates as it tried to boost sluggish economic activity, held back by continuing Covid lockdowns and a weak property market.

The one-year Loan Prime Rate, which serves as a benchmark for corporate loans, was lowered to 3.65% from 3.7%, the People's Bank of China (PBOC) said in a statement.

The five-year LPR, which is used to price mortgages, was cut to 4.3% from 4.45%.

It is the second time in a week the PBOC has cut rates. The seven-day reverse repurchase rate -- a key rate at which it provides short-term liquidity to banks – was also reduced.

"The move comes after a data set in July highlighted the Chinese economy was slowing down. This latest tactic isn’t entirely a surprise, but it should act as a further indicator that the global economic stage is losing light," said Hargreaves Lansdown analyst Sophie Lund-Yates.

Reporting by Frank Prenesti at Sharecast.com