China cuts interest rates for second time this year

Benchmark lending rates will be lowered by 31 basis points to 6%, and deposit rates will be reduced by 25 basis points to 3%, the People's Bank of China said in a statement on its website.

The latest rate cut is effective from Friday. The central bank last cut interest rates on June 7.

In addition to cutting lending and deposit rates, the central bank took another step in liberalising interest rates by lowering the ceiling for lending rates to 70% of benchmark rates, from 80% previously.