The figures came after the People’s Bank of China cut the interest rate on its one-year policy loans by 10 basis points to 2.65% to stimulate the economy. The central bank reduced its short-term rates earlier this week.
China’s recovery has lost momentum in recent months after an initial boost in activity in the first quarter following the ending of pandemic restrictions. The economy faces a number of headwinds, including weak business and consumer confidence, a faltering property market and slowing global demand for exports.
The central bank has shifted to easing mode, with economists forecasting more monetary policy stimulus in coming months, including interest-rate cuts or reductions in the amount of cash banks have to keep in reserve.
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Authorities are also considering a broad package of stimulus measures to support areas such as real estate and domestic demand, according to people familiar with the matter. The State Council may discuss those policies as soon as Friday.
