HONG KONG – The People’s Bank of China (PBOC) has reduced official interest rates for the first time in more than two years, cutting the one-year lending rate by 0.4 percentage points, to 5.6%, and the one-year deposit rate by 0.25 percentage points, to 2.75%. The net interest margin – the spread between what banks pay for deposits and what they charge for loans – has thus narrowed by 0.15 percentage points, to 2.85%.