China's central bank has made a surprise cut to its benchmark lending rate. The People's Bank of China cut its benchmark lending rate by 0.31 percentage points, the second cut in as many months. Westpac Senior international economist Huw Mackay says the timing of the decision was a surprise. He said the move clearly indicates that the Chinese leadership is quite concerned about the lack of response from the domestic economy to the easing that has already been put in place. The People's Bank has also cut the limit it sets on commercial banks' interest rates by 1.7 per cent. Huw Mackay said this is a very clear signal that China wants to significantly boost borrowing.