The People's Bank of China

China cuts interest rates for third time in six months

Written by Joseph Nordqvist

Published: 21:46, May 10, 2015

The central bank of China cut interest rates for the third time in six months, in response to weaker than expected economic activity data.

The rate cuts are part of an effort to stimulate the country’s sluggish economy and reverse a slump that threatens its labor market.

Rates were also cut on November 22 and then again on March 1.

The People’s Bank of China (PBOC) cut both the benchmark lending and deposit rate by 25 basis points to 5.1 percent and 2.25 percent, respectively.

The move is expected to  boost lending and reduce financial costs for state companies.

Chinese economic expansion

China’s economy expanded by only 7.4 percent last year – the lowest level in over two decades. The slowdown is expected to persist too, as the country lowered its target for economic growth this year to 7 percent.

According to Reuters, Zhang Chen, analyst at Shanghai-based hedge fund manger Hongyi Investment, said:

“The timing of the rate cut is well within expectations while the depth of the cut is smaller than many had expected.

“The market is in a consolidation period, and I don’t think the rate cut could change that pattern.”



In addition to cutting rates, the PBOC has relaxed the reserve requirement ratio (RRR) five times in six months.

Economists expect more policy loosening to come.

PBOC rate cut fails to impress investors

The move failed to impress investors, with Chinese stocks falling in early Monday trade. The CSI300 index was down 0.2 percent and the Shanghai Composite Index was down 0.1 percent, as of 0150 GMT.

Joseph Nordqvist Avatar

Other News

A bank tested AI customer twins for marketing, with mixed lessons for businesses

Nov 15, 2026

What makes a product vintage, and why the distinction matters to retailers

Nov 15, 2026

EU business social media use rises, but a gap remains by company size

Nov 15, 2026

Why startups may benefit from testing locally before expanding abroad

Nov 14, 2026

Novel product ideas can be harder to try but more rewarding afterward

Nov 14, 2026

What is in an online cart can influence whether shoppers check out

Nov 14, 2026

Subscription plans can miss customers who would save money, Lyft research finds

Nov 14, 2026

Workers with worse shifts than their colleagues were more likely to leave, restaurant study finds

Nov 14, 2026

More product options do not always reach more customers, cosmetics study finds

Nov 14, 2026

EU household spending grew in 2025 as communication purchases led gains

Nov 13, 2026

Ad experiments can help predict which campaigns drive additional sales

Nov 13, 2026

Browser choice screens lifted Firefox usage in Europe, researchers find

Nov 13, 2026

Online product rankings can cut shipping costs without reducing sales, experiment finds

Nov 13, 2026

Large companies lead EU service exports, but smaller firms dominate in some markets

Nov 13, 2026

Cart reminder timing is linked to different shopper responses

Nov 12, 2026

AI labels changed how consumers judged food images in three experiments

Nov 12, 2026

Shared AI tools were linked to higher sales for small online sellers

Nov 12, 2026

An image ad people like may not be the one they remember

Nov 12, 2026

Upfront rental prices changed competition as nightly rates rose in a study

Nov 12, 2026

Showing payment options earlier can influence online purchase decisions

Nov 11, 2026