China Cuts Key Interest Rate to Spur Economy, But Impact Uncertain
- China cuts 5-year loan prime rate to combat deflation, potentially helping real estate sector
- Rate cut may encourage more affordable mortgages and property investment
- But effectiveness depends on boosting weak consumer confidence and spending
- Ongoing consumer malaise and declining inflation signal deeper economic issues
- China taking action, but stimulus may be too little, too late to reverse downtrend
