Monetary policy China cuts interest rates again in the fight against the economic slowdown

China's central bank has once again cut interest rates to combat the country's stubborn economic slump.

The one-year lending rate will be cut from 3.35 to 3.10 percent and the medium-term interest rate with a term of five years from 3.85 to 3.60 percent, the central bank announced. The medium-term interest rate is the key interest rate for real estate loans.

After a long boom, the weak real estate market has been weighing on the world's second-largest economy for some time. In the third quarter, economic output grew by 4.6 percent, the weakest since the beginning of 2023. The increase in economic output is therefore below the country's Communist Party's growth target of five percent. The government is taking numerous measures to combat the weakness.