China on Monday cut its market-based benchmark lending rates, with the one-year loan prime rate (LPR) down to 3.1 percent from the previous reading of 3.35 percent.

The over-five-year LPR, on which many lenders base their mortgage rates, was lowered to 3.6 percent from 3.85 percent, according to the National Interbank Funding Center.

The move, or the third cut this year, is expected to reduce financing costs, support the recovery of credit demand, and further fuel consumption and investment growth.

The reduction came after the People's Bank of China lowered the interest rate of seven-day reverse repos, a key short-term policy rate, by 20 basis points on Sept. 27, guiding the LPR to move downward.