China is expected to make the biggest cuts this year to two of its core lending rates as pressure mounts on policymakers and banks to reverse slowing momentum and revive flagging demand in the world’s second-biggest economy.

The People’s Bank of China is set to announce reductions to both one-year and five-year loan prime rates, which affect borrowing costs for businesses and households, at a monthly meeting on Monday, after making a surprise cut to its closely related medium-term financing rate last week.

Policymakers in Beijing have struggled to counter a host of challenges since lifting pandemic restrictions at the start of the year, including a property sector slowdown, weaker exports, record youth unemployment and price deflation as consumer confidence wanes.