BEIJING, May 20 -- China on Tuesday cut its market-based benchmark lending rates, with the one-year loan prime rate (LPR) down to 3 percent from the previous reading of 3.1 percent.

The over-five-year LPR, on which many lenders base their mortgage rates, was lowered to 3.5 percent from 3.6 percent, according to the National Interbank Funding Center.

Tuesday's LPR decline -- the first this year -- is expected to further reduce the borrowing costs of businesses and individuals, improve market confidence, and support the steady growth of the real economy.

Analysts said the lowered interest rates sent a clear signal that China is resolved to stabilize the market and expectations amid global uncertainties.