China's central bank, the People's Bank of China (PBOC), has reduced its key interest rates for the second time in three months.
The one-year loan prime rate has been lowered from 3.55% to 3.45%.
China's economy is facing challenges in its post-Covid recovery, including a property crisis, declining exports, and weak consumer spending.
The rate cut contrasts with other major economies that are raising rates to address increasing prices.
The PBOC's previous rate cut was in June; it had been anticipated that the bank might also lower the five-year loan prime rate, but it remained unchanged at 4.2%.
In a surprising move, short and medium-term rates were also reduced.
China's economic struggles have been exacerbated by issues in the property market, highlighted by Evergrande's bankruptcy protection filing and Country Garden's potential significant losses.
Official data indicated that China entered deflation for the first time in over two years, with the consumer price index falling by 0.3% year-on-year.
Youth unemployment figures, which provided insight into the country's slowdown, have ceased to be released by Beijing.
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