[BEIJING] China cut its benchmark interest rates for the first time in more than two years on Friday to lower borrowing costs and lift a cooling economy that is on track for its slackest annual growth in 24 years.

The People's Bank of China said it was cutting one-year benchmark lending rates by 40 basis points to 5.6 per cent.

One-year benchmark deposit rates would be lowered by 25 basis points, it said, adding that the reductions would be effective on Nov 22.

At the same time, the central bank said it was also further freeing up China's interest rates by raising the ceiling for deposit rates to 1.2 times of the benchmark level, from 1.1 times previously.

REUTERS