National economy China's central bank cuts two key interest rates

China's central bank has cut two key interest rates in a bid to boost the country's flagging economy.

As the central bank announced on its website on Monday, the one-year so-called LPR rate for loans for households and companies was lowered from 3.45 percent to 3.35 percent. The five-year rate, which affects real estate loans, was lowered from 3.95 percent to 3.85 percent.

Interest rates, which are closely monitored by the markets, are at a historically low level. The reduction had been expected and is intended to encourage banks to grant more loans at better conditions.

The Asian giant is in the midst of an unprecedented crisis in its huge real estate sector and is struggling with persistently weak consumption and high youth unemployment. Geopolitical tensions with the USA and the EU are also threatening foreign trade.

The growth rate in the second quarter was 4.7 percent. This was below expectations and below the rate of 5.3 percent in the first quarter.