Beijing will lower borrowing costs for companies, but that may not boost the economy as much as some hope.
Amid a slowdown in the economy, the central bank on Saturday
The process of guiding lending rates lower would be "very gradual," said Tao Wang, chief China economist at UBS Investment Bank. "Companies are worried about uncertainties related to trade dispute, slower economy — so even lowering the rates may not actually be able to stimulate a lot of credit demand," Wang told CNBC's"I would say the ... stimulative impact on the economy, I think it's very muted," she said, even though she acknowledged that it would help corporate balance sheets.
Beyond making financing more affordable, the government also needs to encourage more infrastructure spending if it wants to support economic growth, she added.
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