China cuts benchmark lending rates to help ease impact of US trade war

State banks lower deposit rates by 5 to 25 basis points

20250519 PBOC

The People's Bank of China in Beijing. China cuts rates on Tuesday, the first time since October, with the aim to boost consumption and loan growth in a weakening economy. (Photo by Mizuho Miyazaki)  

BEIJING (Reuters) -- China cut benchmark lending rates for the first time since October on Tuesday, while major state banks lowered borrowing costs as authorities work to ease-monetary policy to help buffer the economy from the impact of the trade war with the U.S.

The widely expected rate cuts are aimed at stimulating consumption and loan growth in a weakening economy while still protecting commercial lenders' shrinking profit margins.

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