China's central bank cuts interest rates again amid stagnant economy to boost growth

China is cutting interest rates again in a new effort to shore up its anemic economic growth.

The People's Bank of China announced Saturday that it was cutting the rate on a one-year loan by commercial banks by 0.25 percentage point to 5.35 percent. The interest rate paid on a one-year deposit was lowered by 0.25 point to 2.50 percent.

Rates were last cut on Nov. 22. The new rates take effect Sunday.

The cuts follow a string of tax reductions and other measures aimed at propping up growth. The government cut business taxes last week and has announced a pay hike for civil servants.

The latest cuts are expected to reduce financial costs for state companies and are a signal to state-owned banks to boost lending.