China rate-cut hopes grow as signs of weak recovery mount

Cloudy outlook: People walking past the PBoC building in Beijing. Households are saving more and paying down their mortgages, rather than taking on more debt, according to recent data. — Bloomberg

BEIJING: China’s economic recovery showed further signs of weakening in May, clouding the outlook for the rest of the year and fuelling calls for more central bank stimulus.

While the majority of economists surveyed by Bloomberg still predict the People’s Bank of China (PBoC) will keep interest rates unchanged next week, a string of disappointing economic reports has led some analysts to call for stronger action.