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China Cuts Policy Rate; Economic Data Disappoints

China's central bank lowered its policy rate on Thursday after recent data suggested that the bounce back from the pandemic-related downturn seen at the start of the year proved to be temporary.

Calling for more stimulus measures, official data released today showed that retail sales growth decelerated sharply reflecting weak domestic demand, and industrial production posted slower growth on subdued local and foreign orders.

The People's Bank of China reduced the one-year medium-term lending facility, or MLF, rate by 10 basis points to 2.65 percent.

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by Renju Jaya

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