China has cut interest rates for a sixth time in a year to spur slowing growth in the world's second-largest economy.

The central bank on Friday also increased the amount of money available for lending by reducing the amount banks are required to hold in reserve.

The bank said the benchmark rate on one-year loans will fall by 0.25 percentage points to 4.35 percent effective Saturday. The benchmark rate for one-year bank deposits will be reduced by the same margin to 1.5 percent.

Economic growth in the latest quarter declined to a six-year low of 6.9 percent, according to official data.