BEIJING, May 20 — China’s central bank today cut two key interest rates to historic lows, as Beijing battles to stimulate growth in its vast but slowing economy.

The one-year Loan Prime Rate (LPR), the benchmark for the most advantageous rates lenders can offer to businesses and households, was cut from 3.1 per cent to 3.0 per cent, the People’s Bank of China said.

The five-year LPR, the benchmark for mortgage loans, was cut from 3.6 per cent to 3.5 per cent, the PBOC said.

Both rates were last cut in October to what were then record lows.

China and the United States last week agreed to slash sweeping tariffs on each other’s goods for 90 days, signalling a truce in a brewing trade war between the two economic superpowers.

In addition to heightened trade tensions, Beijing has also been battling a slump in domestic spending, threatening its official growth target for this year of around five per cent.

Data yesterday showed retail sales, a key gauge of domestic demand, grew 5.1 per cent year-on-year last month, short of the 5.8 per cent growth forecast by Bloomberg.

The reading also marked a slowdown from March’s 5.9 per cent growth. — AFP