CX Daily: China Needs More Than Monetary Stimulus to Bolster Flagging Economy, Analysts Say

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China needs more than monetary stimulus to bolster flagging economy, analysts say

China’s central bank turned to rate cuts in June to bolster a fading economic recovery, reducing businesses and households’ borrowing costs. But with a slew of poor data in the past two months, monetary stimulus alone won’t be able to shore up the faltering economy, analysts said.

Last month, the People’s Bank of China (PBOC) cut several key policy rates — namely the seven-day reverse repo rate, the one-year medium-term lending facility (MLF) rate, as well as the overnight, seven-day and one-month standing lending facility (SLF) rates — by 10 basis points each.