PBOC acts after manufacturing figures show contraction looming

China has cut benchmark interest rates for the first time since July 2012 in an effort to prop up growth as the economy continues to slow.

Effective from Saturday, the one-year benchmark lending rate will be lowered by 40 basis points to 5.6 percent and the one-year benchmark deposit rate by 25 basis points to 2.75 percent, the People's Bank of China said on Friday.