The Chinese central bank cuts interest rates on loans to banks in order to mitigate the damaging effects of the corona crisis on the economy. It is the largest interest rate cut by China since 2015.

The so-called repo rate goes from 2.4 to 2.2 percent. In addition, the Chinese central bank is pumping 50 billion yuan (6.5 billion euros) into the financial system through short-term loans to banks to help counter liquidity shortages in the financial markets.

It is the first time since February that China has cut interest rates in the fight against the corona crisis. The Chinese economy had been hit by the crisis. Other central banks have also taken action, including the US Federal Reserve. The Chinese central bank is expected to take even more monetary steps later.

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