China’s central bank cut both one-year and seven-day lending rates by 10 basis points, a move economists said would have little impact since Covid controls have made households and businesses reluctant to borrow. New credit in July increased at the slowest pace since at least 2017.
“The rate cut shows the entire economy is in trouble,” said Iris Pang of ING Groep NV. A wave of
mortgage boycotts by households over incomplete projects has made households nervous about buying homes, reducing the impact of lower mortgage rates, she added.