BEIJING (AP) - China's central bank announced Saturday the fourth round of interest cuts in seven months and lower deposit-reserve ratios for banks to lend to small businesses, as Beijing tries to shore up the country's sluggish economy.

BEIJING (AP) China's central bank announced Saturday the fourth round of interest cuts in seven months and lower deposit-reserve ratios for banks to lend to small businesses, as Beijing tries to shore up the country's sluggish economy.

The People's Bank of China said it would cut the rate on a one-year loan by commercial banks by 0.25 percentage point to 4.85 percent. The interest rate paid on a one-year deposit would be lowered by 0.25 point to 2 percent.

Rates were cut on Nov. 22, March 1 and then May 11. The new rates take effect Sunday.

The central bank also said it would lower the deposit-reserve ratios by 50 points for banks that are lending to small businesses and agriculture-related businesses, a move that would boost lending to the private sector.

The state-owned banking industry lends mostly to state companies, so the new measure is expected to inject more credit into non-state, usually smaller businesses.

China's economic growth has slowed to the lowest level since the aftermath of the 2008 global crisis. Its stock markets plunged Friday, and its stock market tumbled in the past two weeks.