The central bank also reduced one-year benchmark deposit rates by 25 basis points to 2.25 percent.
China's economy is still facing relatively big downward pressure, the overall level of domestic prices remains low, and real interest rates are still higher than the historical average, the PBOC said.
The Chinese economy expanded 7.0 percent in the first quarter of 2015, down from a 7.3 percent increase in the previous three-month period. It is the lowest growth rate since the March quarter of 2009, due to a slowdown in manufacturing and property investment.
Annual inflation rate has been below 2 percent since September. The producer price index fell by 4.6 percent in April and has been declining since March 2012.
The average price of a new home in China's 100 major cities edged down 0.01 percent month on month to 10,522 yuan per square meter, according to the report by the China Index Academy (CIA). The figure marked a sharp slowdown in the pace of housing price decline from the 0.15 percent recorded in March. Previous figures showed that home prices in China were on decline for eight straight months until a slight increase of 0.21 percent in January. They started dropping again from February.