China cuts key lending rates to boost economy

China cut two key interest rates in a bid to boost the country’s flagging economic recovery.

The move came shortly after figures showed Beijing may miss its 5% GDP growth forecast for 2024, with the economy last quarter growing at the slowest pace in a year.

Experts fear China could fall into a deflationary spiral that would paralyze domestic consumption. Meanwhile exports slowed sharply last month, while house prices fell at the fastest rate in a decade. Even as Beijing looks to kick-start its economy, the US presidential election could prove decisive, with former President Donald Trump proposing tariffs of 60% or higher on Chinese imports in case he wins.