As growth slows, China considers backing consumer and private sectors.

China is reportedly planning to introduce more monetary stimulus this year to support its slowing economy, but policymakers will be cautious about measures that could further increase the country’s debt levels or cause capital flight. The government is said to be considering initiatives to boost household subsidies and bond issuance, with the latter aimed at shoring up investment. Policymakers are expected to be cautious about supporting the property sector, given concerns around speculative real estate investment. China’s central bank has already cut the interest rate on its one-year medium-term lending facility, and further cuts to the benchmark loan prime rate are anticipated.

 

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