China's Economy Stumbles: Central Bank Cuts Reserve Ratio Amid Falling Industrial Profits

China’s central bank, the People's Bank of China (PBoC), has slashed the reserve requirement ratio by 50 basis points, bringing it to an average of 6.6%. This immediate move comes alongside a cut in the seven-day reverse repo rate by 20 basis points to 1.5%, a crucial rate used to set the country’s benchmark interest rates.

At the same time, industrial profits continue to decline, with August figures showing a 17.8% drop compared to the previous year. This follows a modest gain of 4.1% in July, signaling deeper economic challenges and pushing Beijing toward further stimulus measures.

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