China's central bank cut benchmark interest rates for loans this Monday, a sudden move that surprised international markets. Beijing is thus trying to liven up the economy, which slowed in July, with industrial production and retail affected by the 'zero cases' policy in the fight against covid-19, and also in the face of a real estate crisis.

The central bank cut medium-term rates, which allow one-year loans, by ten basis points to 2.75% - it's the first cut since January. Analysts heard by Bloomberg had expected rates to remain unchanged.

Industrial production grew 3.8% in July from a year ago, down from the 3.9% recorded in June and the 4.6% rise that was expected by analysts, says Reuters.

Retail sales, which only picked up again in June, were up 2.7% over 2021, far from the estimated 5% and 3.1% recorded in June.

"July data suggest that the post-refinancialization recovery has lost gas as one-off boosts caused by reopening have faded, and mortgage boycotts have triggered renewed deterioration in the housing sector," Julian Evans-Pritchard of Capital Economics and quoted by Business told Reuters.