China Unveils Major Stimulus Package to Revive Economy Amid Deflation Concerns

China's central bank announced its largest stimulus package since the pandemic to combat economic deflation and meet growth targets. Analysts, however, caution that additional fiscal measures are necessary. The package includes funding injections and interest rate cuts, but its effectiveness is questioned due to weak credit demand and property market downturn.

China's central bank has launched its most extensive stimulus package since the pandemic began, aiming to pull the economy out of a deflationary slump and closer to government-set growth targets. However, analysts stress the need for additional fiscal measures to achieve these goals.

The broader-than-expected package includes funding injections and interest rate cuts in an effort to restore confidence in the world's second-largest economy. Despite this, experts express concerns over weak business and consumer credit demand, highlighting the lack of policies to support real economic activity.

Governor Pan Gongsheng has disclosed plans to lower borrowing costs, ease mortgage repayments, and cut reserve requirement ratios for banks. While these measures have sparked positive market reactions, analysts remain skeptical about their long-term impact, especially given the ongoing property market crisis and poor economic data.

(With inputs from agencies.)