The central bank cut its benchmark lending rates by 10 basis points in June, marking the first cut in 10 months.

This year, analysts expect more slight cuts as consumers and firms are unwilling to borrow.

Chinese families and private enterprises are saving more and borrowing less, potentially leading to a balance sheet recession.

Local governments will be encouraged to issue bonds faster to fund infrastructure projects.

The broad M2 money supply expanded 10.7% in July, down from 11.3% in June.

Outstanding yuan loans grew 11.1%, while outstanding total social financing (TSF) slowed to 8.9% in July.