China’s central bank cuts two key interest rates

China’s central bank has cut two key interest rates to historic lows, the latest move by authorities in Beijing to boost faltering spending in the world’s second-largest economy.

The move comes days after China posted its weakest quarterly growth in a year and a half (4.6%) despite efforts to stimulate the economy.

Chinese officials are aiming for 5% growth this year, but that goal faces major challenges including a decline in consumption and a debt crisis weighing on the huge real estate sector.

The central bank announced a cut in the one-year preferential lending rate to 3.1% from 3.35%. This rate is the benchmark for the best interest rates lenders can offer to businesses and households.

The five-year preferential lending rate, the benchmark for real estate loans, was cut from 3.85% to 3.6%.

The central bank had previously cut both rates in July, and they are now at their lowest levels ever.