In an effort to combat the economic slowdown, China’s central bank cut interest rates for the second time in two months on Thursday. The bank's website states that benchmark lending rates will be lowered by 31 basic points to 6 percent, and deposit rates will be cut by 25 basic points to 3 percent.

The bank is also lowering the floor for lending rates to 70 percent of benchmark rates from the previous 80 percent, allowing banks to give bigger discounts on their borrowing costs.

This decision coincides with the European Central Bank’s action in cutting all main interest rates. China's central bank interest rate cuts will be officially implemented on Friday.