The Politburo, China’s prime decision-making body, also called on further policy actions to boost domestic demand and prevent risks.
On Tuesday, the central bank also cut the seven-day reverse repo rate by 10 basis points to 1.8 per cent.
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“The PBOC lowered its policy rates by a larger-than-usual margin, amid growing concerns among policymakers about the health of Chinas economy,” said Capital Economics.
“A cut to the loan prime rate (LPR) later this month is now a given and we expect wider easing measures too. But monetary stimulus is of limited use in the current environment and won’t be enough, on its own at least, to put a floor beneath growth.”
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