BEIJING, Nov 26 (Reuters) - China's central bank cut banks' benchmark lending and deposit rates by 1.08 percentage point on Wednesday, the fourth cut since mid-September.
The cost of one-year bank loans will fall to 5.58 percent from 6.66 percent, while the benchmark one-year deposit rate falls to 2.52 percent from 3.60 percent, the People's Bank of China (PBOC) said.
The cut in interest rates takes effect on Thursday, the central bank said on its website (www.pbc.gov.cn).
The cut in the lending rate was the biggest since October 1997.
The PBOC said the easing was meant to ensure sufficient liquidity in the banking system to ensure growth.
The central bank also cut interest rates on Oct. 29, Oct. 8 and Sept. 15.
The PBOC is also lowering banks' required reserves. The requirement for big banks will decrease by 1 percentage point, while that for smaller banks will be cut by 2 percentage points, effective Dec. 5.
The five biggest banks will have to hold 16.0 percent of their deposits in reserve at the PBOC, down from 17.0 percent. The requirement for other lenders drops to 14.0 percent from 16.0 percent.
The PBOC last cut required reserves on Oct. 8. (Reporting by Eadie Chen and Zhou Xin; Editing by Alan Wheatley)