China's central bank lowered the cost of its medium-term loans to banks on Wednesday in a move consistent with broad policy easing measures announced a day earlier to shore up a flailing economy.

China’s central bank lowered a short-term policy rate and pumped more liquidity into the financial system, as it continues efforts to help boost the economy.

The People's Bank of China said the seven-day reverse repo rate will be lowered by 20 basis points to 1.50% from 1.70% previously, according to an online statement. The rate adjustment will be effective from Sept. 27. The PBOC last lowered the borrowing cost of the short-term liquidity tool by 10 basis points in July.