BEIJING — China’s central bank announced on Aug 25 that it would cut the reserve requirement ratio (RRR) and lower key interest rates to further reduce corporate financing costs.

According to the announcement made by the People’s Bank of China, benchmark interest rates will be cut. From Aug 26, interest rates for one-year lending and deposits will be cut by 25 basis points to 4.6 percent and 1.75 percent respectively.

From Sept 6, the bank will also cut the RRR for financial institutions by 50 basis points. The RRR for financial leasing companies and auto financing companies will be lowered by 300 basis points.