China needs to move quickly to boost economic recovery

“It is better to introduce measures as soon as possible,” said Ning Jizhe, deputy head of the economic committee of the Chinese People’s Political Consultative Conference (CPPCC) and former vice chairman of the National Development and Reform Commission (NDRC).

The Chinese economy is facing strong downward pressure and its recovery is unstable and unbalanced, said Ning, who was also the director of the National Bureau of Statistics.

The strength of macroeconomic measures “should not be small” to avoid “a spiraling economic contraction” in a global slowdown, Ning said.

The Chinese cabinet met this month to discuss measures to boost economic growth, pledging to implement policies in a timely manner and take stronger measures in response to changes in the economic situation.

The country’s benchmark prime rates were cut on Tuesday for the first time in 10 months, while the five-year prime rate was cut by 10 basis points, less than the market expected.

China’s central bank is likely to keep cutting interest rates, but reluctance by private companies and households to borrow means continued policy easing could hurt banks already battling margin pressure , according to analysts.