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BEIJING, Aug. 25 (Xinhua) -- The People's Bank of China (PBOC), the central bank, announced on Tuesday to cut the reserve requirement ratio (RRR) and lower key interest rates.

From Sept. 6, it will cut the RRR for financial institutions by 50 basis points. The RRR for financial leasing companies and auto financing companies will be lowered by 300 basis points, the PBOC announced.

Benchmark interest rates will also be cut. From Wednesday, interest rates for one-year lending and deposits will be cut by 25 basis points to 4.6 percent and 1.75 percent respectively, said the announcement.