China’s central bank cuts interest rates to 5.1 per cent amid slowing economy

China's central bank has cut interest rates to 5.1 per cent, as the country's economy continues to slow down.

 

It's the third cut in six months, and the hope is that is will boost development in the country. The change will come into effect on Monday. 

 

In 2014, growth rate was 7.4 per cent, which was its weakest in 24 years. The decline has been gradual, though – in 2013 it was already low at 7.7 per cent. 

 

Last week, a series of disappointing economic datasets cast even more of a cloud over China's outlook.  The International Monetary Fund (IMF) predicted growth would stablise at around six per cent by 2017, while trade and inflation results failed to meet expectations. 

 

"China's economy is still facing relatively big downward pressure,” the central bank said in a statement.

 

It is considered likely that industrial output and investment data, due to be released during the coming week, will also lower sentiment.