The raft of new measures aims to jumpstart the economy amid a yearslong property downturn, muted consumer demand, and high youth unemployment.

China's central bank on Wednesday said it would slash another key interest rate, a day after it unveiled a raft of new measures aimed at boosting its ailing economy.

The People’s Bank of China took more steps to boost its flagging economy, after a slew of downbeat indicators recently sparked concerns that Beijing’s official annual growth target of around 5% might be out of reach.

The government is aiming for economic growth of around 5.0% for 2024, but some investment banks including Goldman Sachs, Nomura, UBS and Bank of America have recently lowered their forecasts for China's growth rate this year. Stocks rose and the onshore yuan opened at its strongest level since May 2023.

China will cut the amount of cash banks need to have on hand, known as the reserve requirement ratio or RRR, by 50 basis points.

Gold tested new highs as China’s central bank lowered its reserve requirement ratio to boost the country’s economy. In case gold manages to settle above the $2650 level, it will head towards $2700. RSI is in the overbought territory, so the risks of a pullback are increasing.

The world’s second-largest economy has struggled to rebound from the pandemic, leading financial authorities to cut interest rates and support the property market.

China's central bank has unveiled a major package of measures aimed at reviving the country's flagging economy. People's Bank of China (PBOC) Governor Pan Gongsheng announced plans to lower borrowing costs and allow banks to increase their lending.

China announced a broad range of stimulus measures on Tuesday to support the faltering economy, stabilise the housing sector and restore market confidence. Stocks and bonds jumped after the announcement.

China’s central bank announced an unusually broad package that signals growing unease in Beijing after a run of downbeat numbers on jobs, spending and inflation.