China's monetary shift signals economic worries, but 'bazooka-style' stimulus is unlikely, experts say

Chinese top leadership surprised the market by shifting its monetary policy stance to “moderately loose” from “prudent” for the first time in 14 years, signaling deep concerns about economic challenges and the threat of another trade war. Despite recent stimulus measures, the sluggish domestic demand, deflationary pressures, and housing downturn have prompted experts to predict a “new monetary easing cycle” with potential policy rate cuts of over 50 basis points in the next two years, as monetary easing leeway is more limited than in the past.

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