China cuts interest rate to shore up sagging economy

By JOE McDONALD
AP Business Writer

BEIJING (AP) — China’s central bank has trimmed a key interest rate to shore up sagging economic growth at a politically sensitive time when President Xi Jinping is believed to be trying to extend his hold on power. The ruling Communist Party has acknowledged it can’t hit this year’s official 5.5% growth target after anti-virus curbs disrupted trade, manufacturing and consumer spending. A crackdown on corporate debt has caused activity in the vast real estate industry to plunge. Government data showed July factory output and retail sales weakened. The rate cut suggested Beijing’s worries about rising debt are at least temporarily outweighed by the political dangers of an economic slump and job losses.