SHANGHAI/BEIJING— China’s stubbornly weak credit growth has spurred talk of its first cut in benchmark lending rates in three years, but economists and policy insiders say concerns about a potential knock to its currency will likely give the central bank pause.
While the People’s Bank of China (PBOC) has already slashed banks’ reserve requirements four times this year and pushed money market rates lower, analysts are now wondering if policymakers are considering wheeling out bigger guns.
