(RTTNews) - The Chinese central bank reduced its key interest rates on Monday.

The People’s Bank of China slashed one-year lending rate by 27 basis points to 5.31% from 5.58%. The central bank also cut one-year deposit rate to 2.25% from 2.52%. The new rates will take effect on December 23.

Further, the PBOC lowered reserve required for financial institutions by 50 basis points, effective from December 25.

On November 26, the central bank had lowered the one-year lending rate by 108 basis points to 5.58%. This was the biggest reduction since 1997. The one-year deposit rate was also reduced by the same amount to 2.52%, the largest cut since 1999.

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