BEIJING: China unveiled some of its boldest measures in years on Tuesday aimed at boosting its struggling economy as leaders grapple with a prolonged property sector debt crisis, continued deflationary pressure and high youth unemployment.

Central bank chief Pan Gongsheng told a news conference in Beijing that the bank would cut a slew of rates in a bid to boost growth, pledging to “promote the expansion of consumption and investment”.

However, “it may not be enough”, Julian Evans-Pritchard, head of China economics at Capital Eco­nomics, warned. He said a full economic recovery would “require more substantial fiscal support than the modest pick-up in government spending that’s currently in the pipeline”.

Among the measures unveiled on Tuesday was a cut to the reserve requirement ratio (RRR), which dictates the amount of cash banks must hold in reserve. The move will inject around a trillion yuan ($141.7 billion) in “long-term liquidity” into the financial market, Pan said.

Beijing would also “lower the interest rates of existing mortgage loans”, he said.

Published in Dawn, September 25th, 2024