China's central bank trims lending rate to 2.5%

This is the first such cut in more than four years.

CNBC reports that the People’s Bank of China has unexpectedly trimmed the seven-day reverse repurchase rate to 2.5% from 2.55%, the first such cut in more than four years.

This also signals that the central bank is keen to ease investor worries that higher retail inflation would prevent it from delivering fresh stimulus, according to analysts.

The move came two weeks after the PBOC cut the borrowing cost on its medium-term lending facility (MLF), used by banks for longer-dated funding needs, by the same margin.

Both cuts raise the likelihood that the PBOC will trim its new benchmark loan prime rate (LPR), off of which many lenders base their mortgage rates, this week in a bid to free up funds to credit-starved parts of the economy.

Here’s more from CNBC.