Can interest rate cuts give Chinese economy a kickstart?

Hello, and you're listening to the Marketplace Morning Report live from the BBC World Service.

I'm Leanna Bern, very good morning, too.

Now, it's no surprise, Chinese economy hasn't been doing so well, and in fact, it's never

really bounced back from the pandemic.

No, it's central bank is stepping in, cutting one of its key interest rates for the second

time in three months, here's the BBC's Nick Marsh.

With China's economy facing a host of different problems, observers were expecting stronger

action from its central bank.

Borrowing for businesses taking out one year loans was made slightly easier, but the rate

for long-term lending remained unchanged.

Since lifting tough COVID restrictions at the end of last year, China's seen poor economic

growth, record youth unemployment and falling prices.

The post-pandemic spending boom, seen in most of the rest of the world, hasn't materialized.

On top of this, China's property sector, which accounts for a quarter of its economic activity,

has seen companies lurching from default to default for several years.

Even though they've described the country's economic problems as tortuous, China's policy makers

have so far resisted any major stimulus measures.

The reconcerns at the very top of China's leadership about trying to grow the economy recklessly,

but how long they'll avoid taking serious action is unclear.

Andy Xi is an independent economist based in Shanghai, and he says China's leaders don't really

have much choice.

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