Xi faces more tough choices in wake of surprise China rate cut

Hong Kong - Chinese President Xi Jinping has resisted pulling the trigger on a major stimulus to revive the world’s second-biggest economy. The grim market reaction to a surprise rate cut shows investors want to see him take much bolder steps.

The People’s Bank of China (PBOC) on Tuesday lowered the rate on its one-year loans – or medium-term lending facility – by 15 basis points to 2.5 per cent, the steepest cut in three years. The move came shortly before the release of July data that showed weak consumer spending growth, sliding investment and rising unemployment.