China is not sitting idly by as its economy teeters on the edge. In a bold attempt to reverse its economic slowdown, the People’s Bank of China (PBOC) has unleashed its most aggressive stimulus package in years. The package includes slashing mortgage rates by 50 basis points and a 0.5% cut in the reserve requirement ratio (RRR) for banks. In simpler terms: China is freeing up more cash and pushing banks to lend like there’s no tomorrow.
The PBOC also lowered the seven-day reverse repurchase rate to 1.5%, making borrowing cheaper and easier. But here’s the kicker—despite these efforts, experts aren’t convinced it’ll be enough. China’s property market is struggling, and consumer demand remains weak. The real question is whether these desperate measures will kickstart growth or simply delay the inevitable economic reckoning.