China’s central bank cuts interest rates, moving to put more pep into the economy

AP Business Writer

BANGKOK (AP) — China’s central bank has cut key interest rates in a surprise move aimed at injecting new into the ailing property sector, while the ruling Communist Party released details of a top-level meeting focused on long-term economic strategy. The People’s Bank of China cut the five-year loan prime rate, which is a benchmark for mortgages, by 10 basis points to 3.85% from 3.95%. The one-year loan prime rate, or LPR, was reduced to 3.35% from 3.45%. The central bank also eased its collateral requirements for medium-term loans to banks. The party’s planning document promises to beef up social welfare such as pensions, improve the tax system and protect private property rights.