THE central bank signaled Tuesday that it could take bigger steps to boost the economy after unveiling what amounted to the slimmest of rate cuts on new loans for companies.

“There is room for us to cut interest rates,” said Liu Guoquiang, the deputy governor of the People’s Bank of China, while speaking with reporters in Beijing. “But whether we do it or not depends on the economic growth and price conditions.”

The central bank will also wait to see what impact an overhaul of monetary policy announced Saturday has on activity. As part of that reform, the central set a new one-year Loan Prime Rate of 4.25 percent Tuesday. That’s slightly lower than its existing benchmark one-year lending rate of 4.35%, which hasn’t changed in years.

Liu said the new reform isn’t meant to replace the country’s other monetary policy, adding that it is more of an enhancement.

“We don’t expect it to be a one-trick pony and solve all the problems,” Liu added.

(SD-Agencies)