The People’s Bank of China is signaling that it sees no immediate need to cut benchmark interest rates, even after the economy posted its weakest monthly performance of 2025. Bloomberg reported that the central bank is holding back from additional monetary easing and will instead rely on existing structural tools to support growth. A raft of July data underscores the slowdown. Fixed-asset investment fell 5.2% from a year earlier—its steepest drop outside the pandemic in more than two decades—while retail sales grew just 3.7%, the slowest pace since December 2024. Net new bank lending also turned negative for the first time in 20 years, and consumer prices remained flat amid prolonged factory-gate deflation. Analysts warn that fiscal measures alone may not revive demand. Fitch Ratings said government spending is buttressing near-term consumption, but momentum is decelerating. Reuters Breakingviews added that without stronger consumer demand, Beijing’s push to curb industrial overcapacity and stabilize the property market risks further cooling activity, even though equities have rebounded, with the Shanghai Composite up about 30% over the past 12 months.