In a released statement on Sunday, China’s central bank said the new reserve rate cut, which represents the second cut since February, will begin on Monday.
In February the central bank cut its reserve requirement and lowered the rate to 19.5 percent for big banks and 16 percent for small to medium size banks.
The new reserve cut lowers the rate by 100 basis points to 18.5 percent.
Last week, new data from the Chinese National Bureau of Statistics showed China’s first quarter 2015 GDP dropped to 7.0 percent from 7.3 percent in the final quarter of 2014, marking the weakest level since 2009 during the global recession.
Beijing has set a 7 percent GDP target for 2015.
In January the IMF lowered its growth forecast for China over the next two years.
For 2015 the IMF forecasts a GDP growth rate of 6.8 percent, lower than their earlier forecast of 7.1 percent while growth in 2016 is expected to drop even further to 6.3 percent, down from 6.8 percent.