China Cuts Key Interest Rate to Prop Up Slowing Economy

• The People's Bank of China unexpectedly cut its 5-year benchmark loan prime rate to 3.95% from 4.10% • The 1-year loan prime rate was left unchanged at 3.45% • Move aims to support slowing economic recovery in China • First rate cut since August 2023, brings rates further into record-low territory • Cut directed towards struggling property market battered by bankruptcies