PBOC to cut rates, RRR and provide more property market support
China facing deflationary pressures, growth target at risk
Analysts say more fiscal stimulus needed to restore confidence

BEIJING, Sept 24 Reuters China39;s central bank on Tuesday unveiled its biggest stimulus since the pandemic to pull the economy out of its deflationary funk and back towards the government39;s growth target, but analysts warned more fiscal help was vital to hit these goals.

The broaderthanexpected package offering more funding and interest rate cuts marks the latest attempt by policymakers to restore confidence in the world39;s secondlargest economy after a slew of disappointing data raised concerns of a prolonged structural slowdown.

But analysts questioned how productive the People39;s Bank of China39;s liquidity injections would be, given extremely weak credit demand from businesses and consumers, and noted the absence of any policies aimed at supporting real economic activity.

This is the most significant PBOC stimulus package since the early days of the pandemic, said Capital Economics analyst Julian EvansPritchard.

But on its own, it may not be enough, he added, saying more fiscal stimulus may be needed to return growth to a trajectory towards this year39;s official target of roughly 5.

Chinese stocks and bonds rallied and Asian stocks hit 212 year highs as Governor Pan Gongsheng announced plans to lower borrowing costs and inject more funds into the economy, as well as to…