China Cuts Interest Rates to Bolster Economy

China cut interest rates for the fifth time in three months on Monday in its latest effort to rev up the world's fourth largest economy.

The benchmark one-year lending and saving interest rate will drop 27 basis points to 5.31 percent and 2.25 percent, respectively.

A Chinese property expert says the latest cut in key interest rates will generate positive effects in boosting the weakening property market.

Liu Hongyu is with the Property Research Institute connected with China's Tsinghua University.

"The new cut will help to facilitate transactions, spur consumption and restore the well-being of the property market. But it may take some time before such an effect can fully filter down."

Liu Hongyu has also encouraged the government to boost people's confidence in the future of the country's economy and employment, which are currently holding some consumers from making purchases in the market.

The interest rate cut is effective on Tuesday.

In late November, China's central bank cut interest rates by 108 basis points, the biggest cut in 11 years.