China on Monday cut its market-based benchmark lending rates, with the one-year loan prime rate (LPR) down to 3.1 percent from the previous reading of 3.35 percent.

The over-five-year LPR, on which many lenders base their mortgage rates, was lowered to 3.6 percent from 3.85 percent, according to the National Interbank Funding Center.

The move, the third cut this year, is expected to reduce financing costs, and further boost consumption and investment growth.

Bruce Pang, chief economist of JLL Greater China, told CGTN that the 25-basis-point cut in LPRs was slightly larger than the market expected.

The Chinese government needs to maintain a strong monetary policy while promoting the stabilization and recovery of the property market, said Pang. He added that the Chinese government generally does not cut interest rates as often as other economies, and hence its rate cuts each time need to be strong enough.

(With input from Xinhua; Cover via CFP )