China cut benchmark lending rates as anticipated at the monthly fixing on Monday, following reductions to other policy rates last month as part of a package of stimulus measures.

The one-year Loan Prime Rate (LPR), which constitutes the benchmark for the most advantageous rates lenders can offer to businesses and households, was cut from 3.35 percent to 3.1 percent. The five-year LPR, the benchmark for mortgage loans, was cut from 3.85 to 3.6 percent. Both rates were last reduced in July and are sitting at all-time lows.

People's Bank of China (PBOC) Governor Pan Gongsheng told a financial forum last week lending rates will decrease by 20 to 25 basis points on October 21.

The PBOC announced cuts to banks' reserve requirement ratio by 50 basis points and the benchmark seven-day reverse repo rate by 20 basis points on September 24, kicking off the most aggressive stimulus since the pandemic.

It also cut the medium-term lending facility rate by 30 basis points last month.

Most new and outstanding loans in China are based on the one-year LPR, while the five-year rate influences the pricing of mortgages.

Since the September 24 measures, the CSI300 Index has broken records for daily moves and is up more than 14 percent overall.

Data on Friday showed China's economic growth was slightly better than expected in the third quarter, although property investment fell more than 10 percent in the first nine months of the year. Retail sales and industrial production picked up in September.

Officials addressing a press conference on Friday expressed confidence the economy can achieve the government's full year growth target of around 5 percent, and flagged another cut to banks' reserve ratio by the year-end.

Zhang Zhiwei, President and Chief Economist of Pinpoint Asset Management, said Monday's rate cut was "an encouraging sign". "The monetary policy has clearly shifted to a more supportive stance since the press conference on September 24. The real interest rate in China is too high," he said. (Agencies)