US EditionChina eases monetary policy to boost ailing economy
- China eased key monetary policy tools on May 7, 2025, in Beijing to stimulate its struggling economy.
- This move responds to sluggish domestic demand, weak consumption, a property crisis, and ongoing trade tensions with the US.
- Central bank head Pan Gongsheng announced cuts to interest rates and bank reserve requirements, aiming to boost lending and support homebuyers.
- The interest rate on loans for initial homebuyers with terms longer than five years is being reduced from 2.85% to 2.6%, while Beijing aims for an ambitious 5% growth rate this year despite ongoing trade tensions.
- Analysts see the measures as positive but note missing fiscal policies and expect more actions if economic data worsens due to trade war effects.
25 Articles
25 Articles
China central bank cuts interest rate as US tariffs threaten economy
Updated at 1:35 pm on May 7, 2025 BEIJING, China — China on Wednesday eased key monetary policy tools in a bid to boost its ailing economy as it struggles with the effects of weak consumption and Donald Trump’s trade war. The country’s leaders are battling to reignite growth, which has not fully recovered since
In view of the trade war with the US and weak domestic consumption, China has announced further stimulus measures.
The trade dispute between Washington and Beijing has not yet been resolved, and Beijing wants to stimulate domestic consumption. China's central bank announced on Wednesday that it would cut interest rates.
Infographics: China unveils new financial policy package to stabilize market, boost confidence
China on Wednesday announced a broad set of monetary, regulatory and market-oriented policies aimed at stabilizing the market, boosting expectations and shoring up economic momentum.
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