China cuts rates again in face of weak demand, deflation risk

BEIJING: China's central bank cut interest rates on Saturday, just days before the annual meeting of the country's parliament, in the latest effort to support the world's second-largest economy as its momentum slows and deflation risks rise.

The central bank said the 25 basis point cut in the benchmark interest rate to 5.35 percent - its second cut in just over three months - and a 25 basis point cut in the benchmark saving rate to 2.5 percent would be effective from Sunday.