China’s central bank has unleashed a blitz of policy support for the economy as policymakers make their broadest push so far to hit this year’s annual growth target of about 5%.
People’s Bank of China Gov. Pan Gongsheng announced a series of stimulus measures at a rare briefing Tuesday in Beijing, including moves to boost banks’ lending to consumers and corporates, and a cut to its key short-term interest rate. China will also lower the mortgage rate for existing housing loans.
"Monetary policy easing come bolder than expected, with both rate cuts and RRR (reserve ratio requirements) cuts announcing at the same time,” said Becky Liu, head of China macro strategy at Standard Chartered. "We see room for bolder easing ahead in the coming quarters, following the Fed’s outsized rate cuts.”
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