China Central Bank Implements Economic Stimulus Measures

China's central bank has announced significant measures to stimulate its struggling economy, including a 50 basis point cut in the reserve requirement ratio (RRR) and a reduction of the seven-day repo rate by 0.2 percentage points to 1.5%. These actions are aimed at addressing deflationary pressures and boosting consumer confidence, particularly in the beleaguered property market, where mortgage rates will also be cut by an average of 0.5 percentage points. Economists believe that an effective housing rescue package is crucial for achieving the government's target of around 5% GDP growth, amidst concerns over a prolonged property crisis. Additionally, there are calls for further demand-side easing measures as consumer confidence remains low, with many hesitant to invest in property due to delivery risks. The recent economic indicators have raised doubts about the feasibility of meeting growth targets, prompting urgent calls for revitalization efforts. Overall, while immediate relief measures are being implemented, the long-term stability of the property market and consumer confidence remain critical challenges.