Beijing - (Saba):
China's central bank cut two key interest rates to record lows on Tuesday, Beijing's latest attempt to boost growth amid trade tensions with Washington and a slump in China's real estate sector.
The People's Bank of China said in a statement that the one-year lending rate, the benchmark for the highest interest rates banks can offer to businesses and households, was cut from 3.1% to 3%.
The bank added that the five-year mortgage rate, the benchmark for mortgage loans, was also cut from 3.6% to 3.5%.
The bank had previously cut these rates to historic lows in October.
Last week, China and the United States agreed to drastically reduce tariffs on each other for 90 days, raising hopes in business circles for a permanent easing of tensions.
However, the ruling party in Beijing continues to face stagnant domestic consumption and a prolonged real estate crisis, threatening its growth target of around 5% by 2025.
China's National Bureau of Statistics announced on Monday that the country's industrial production increased 6.1% in April compared to last year, a rate higher than the expectations of economists surveyed by Bloomberg.
However, according to the National Bureau of Statistics, new home prices declined in 67 of the 70 cities surveyed during the same period, indicating that the real estate market remains fragile.
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