The People’s Bank of China cut its key lending rates for corporate and household loans for a second straight month to cushion a slowdown in economic recovery.

The one-year loan prime rate (LPR) was lowered by 10 basis points to 3.7% from 3.8%.

In the first cut since April 2020, the five-year LPR was also diminished by 5 basis points to 4.6% from 4.65%.

The central bank’s Vice Governor Liu Guoqiang said on Tuesday that politicians should move ahead of the market curve and respond to the market’s general worries in a timely manner.

The statement came after unexpected cuts to borrowing costs for medium-term loans earlier this week, as economic data in December indicated a further slowing in Chinese consumption amid a downturn in the property sector.

As the omicron coronavirus variant continues to hit consumer activity, many experts believe more easing measures will be needed. This is despite other large economies, including the US, signaling plans to tighten their monetary policies this year.

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