China has surprised markets by cutting its key policy rate to boost economic growth. This is reported by Reuters, according to UNN.
Details
China has cut its key short-term policy rate and benchmark lending rates in an effort to boost its economy.
This decision followed the announcement of worse-than-expected economic data for the second quarter, as well as a plenary meeting of the country's top leaders, which takes place approximately once every five years.
The economic situation in China remains challenging: the country is on the verge of deflation, struggling with a long-lasting real estate crisis, and facing high debt levels and weak consumer and business sentiment. Additionally, growing trade tensions and concerns among world leaders about China's export dominance are exacerbating the situation.