A significant set of initiatives aimed at boosting the faltering Chinese economy have been presented by the central bank of China.

Governor Pan Gongsheng of the People's Bank of China (PBOC) unveiled intentions to reduce borrowing rates and let banks to expand lending.

The decision was made in response to a string of unsatisfactory data points that raised predictions in recent months that the second-biggest economy in the world will fall short of its own 5% growth objective this year.

Initially, the RRR will be lowered by 0.5 percentage points, which is anticipated to free up around 1 trillion yuan ($142 billion; £106 billion).

Additional steps to stimulate China's real estate industry during the crisis include reducing the interest rates on current mortgages and bringing down the required minimum down payment to 15% for all home types.

Since 2021, the nation's real estate market has been experiencing a severe decline.

Unfinished construction projects and a significant number of unsold homes remain after the failure of several developers.

Last week, the US Federal Reserve cut interest rates for the first time in almost four years, more aggressively than expected. Hence, such action could have influenced the PBOC's fresh economic stimulus measures.

(Sources: bbc.co.uk)