China's Central Bank Takes Bold Steps to Revitalize Economy

China's central bank has announced a set of expansive monetary stimulus and property market support measures to counter strong deflationary pressures and revive the slowing economy. The measures aim to lower borrowing costs, inject liquidity, and alleviate mortgage burdens, amid continued sluggish growth and poor sentiment.

China's central bank on Tuesday unveiled a sweeping monetary stimulus and property market support package aimed at rejuvenating an economy under severe deflationary pressures. The moves come as the country risks failing to meet this year's growth targets amid a backdrop of disappointing economic data.

Markets responded positively, with Chinese stocks and bonds rallying on the news. Governor Pan Gongsheng announced plans to cut borrowing costs, inject more liquidity, and reduce household mortgage repayments to restore confidence in the world's second-largest economy.

Among the measures, the central bank will reduce the reserve requirement ratio by 50 basis points, potentially freeing up about 1 trillion yuan ($141.93 billion) for new lending. Pan also highlighted a series of interest rate cuts, including those on medium-term lending and loan prime rates, though no exact implementation dates were given.

(With inputs from agencies.)