China's central bank, the People's Bank of China (PBOC), has cut its one-year loan prime Rate by 10 basis points to 3.45%, slightly below expectations. However, the PBOC unexpectedly left its five-year loan prime rate unchanged at 4.2%. The decision comes as data shows faltering growth momentum in the country's economy. Analysts believe that the underwhelming rate cut suggests the PBOC is unlikely to implement larger rate cuts to boost credit demand. The move follows surprise cuts to short- and medium-term lending rates last week, as concerns grow over weak credit growth and deflation risks.

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