Beijing - The Chinese central bank, the People's Bank of China, on Wednesday announced a cut in its benchmark interest rates by 0.27 per cent as a spur to economic growth.

The rate cut, to go into effect on Friday, will see the benchmark one-year deposit rate fall to 3.60 per cent from 3.87 per cent. The benchmark one-year lending rate is to drop from 6.93 to 6.66 per cent.

The move, the second in less than a month, "reflects that the government was really concerned about a cooling down economy and other domestic problems, amid a deepening US-originated world credit crisis," the official Xinhua news agency quoted Tang Min, China Development Research Foundation deputy secretary, as saying. (dpa)