China May Keep Policy Accommodative Amid Uncertain Global Conditions -- Market Talk

Dow Jones
Jul 15, 2025

0701 GMT - Uncertain global conditions will likely keep China's policy accommodative, says Stefan Angrick at Moody's Analytics in a note. Beijing has responded with extra fiscal and monetary support, including key interest rate cuts, infrastructure spending and measures to lift consumption, but their effectiveness will be constrained by weak consumer and business demand as well as limited appetite for borrowing. While China is running an annual trade surplus of around $1 trillion, its domestic economy is fragile, says the head of Japan and Frontier markets economics. Household confidence and spending are weak, youth unemployment is stubbornly high and the property sector is struggling. With domestic demand in the doldrums, consumer prices have changed little since mid-2022. If growth falters, more easing will likely follow, he adds. (monica.gupta@wsj.com)

 

(END) Dow Jones Newswires

July 15, 2025 03:01 ET (07:01 GMT)

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