China’s central bank unexpectedly cut a key interest rate by 15 basis points to 2.5%, following a deteriorating property downturn and sluggish consumer spending.

The move was preceded by gloomy July economic activity statistics, with consumer spending, industrial output, and investment falling and unemployment rising.

The National Bureau of Statistics emphasized the need for macroeconomic adjustment and expanded domestic demand.

The rate drop supported government bonds and weakened the currency rate, with China’s 10-year yield decreasing seven basis points to 2.56%.