China Cuts Key Interest Rate Amid Property Slump, Currency Risks

The People’s Bank of China (PBoC) trimmed a key interest rate and left a separate policy rate unchanged as the country grapples with a storm of economic challenges, including in the nation’s troubled property sector.

A Chinese migrant worker passes by The People's Bank of China (PBOC) as he heads to a bus station in Beijing on May 1, 2013. PBOC is China's central bank that regulates monetary policy and financial institutions. Mark Ralston/AFP/Getty Images

China trimmed a key interest rate and left another important one unchanged on Aug. 21 in what some market observers call a “confusing” and “underwhelming” policy decision.

The People’s Bank of China (PBOC) cut its one-year loan prime rate (LPR)—a benchmark for most household and business loans—by 10 basis points to 3.45 percent, falling short of the consensus estimate. This was the second rate cut in three months.