The People's Bank of China will probably cut interest rates this month for the first time since 2008 as it tackles an economic slowdown, according to the nation's largest investment bank and the manager of the top-performing bond fund.

China International Capital Corp and HFT Investment Management Co said it is "necessary" to lower the benchmark lending rate of 6.56 percent as spending cools in the world's second-largest economy. Data this weekend are expected to show fixed-asset investment expanded at the slowest pace in a decade, inflation matched a two-year low and industrial output increased less than 10 percent for a second month, according to Bloomberg surveys.

China Daily-Agencies