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China cuts key interest rate as recovery falters


China's central bank has cut one of its key interest rates for the second time in three months as the world's second-largest economy struggles to bounce back from the pandemic.

The People's Bank of China (PBOC) lowered its one-year loan prime rate to 3.45% from 3.55%.

The country's post-Covid recovery has been hit by a property crisis, falling exports and weak consumer spending.

In contrast, other major economies have raised rates to tackle high inflation.

The PBOC last cut its one-year rate - on which most of China's household and business loans are based - in June.

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