China Weighs Broad Stimulus to Boost Economic Growth

China's economy is slowing, prompting the PBOC to cut rates. Weak PMI data highlights the slowdown, and further monetary policy actions are expected. Infrastructure investment is not the ideal solution, and more central bank measures are anticipated to boost growth.

What recent action did the PBOC take in response to China's economic slowdown?

• Implemented a rate cut

• Increased interest rates

• Reduced government spending

• Introduced new taxes

What is expected to follow the initial 10 basis point cut in the repo rate?

• A 10 basis point cut in the marginal lending rate

• A 20 basis point increase in the repo rate

• A new fiscal policy

• An increase in infrastructure investment

What sector is mentioned as having an infrastructure overhang?

• Healthcare sector

• Agricultural sector

• Residential sector

• Technology sector

How much impact do the current measures have on the growth rate according to economic models?

• 2%

• 1%

• 5%

• 0.1%

What further action is anticipated from the Central Bank over the rest of the year?

• Increase in taxes

• 20 basis point rate cuts

• Reduction in public sector jobs

• Introduction of new tariffs