China, the world's second largest economy, is poised to slash interest rates as economic growth starts to slow down.
The pace of economic growth in China has slowed down to 7.7% in the first quarter of 2013 compared with 7.9% in the last three months of 2012 [Chart 1].
China's government is also tipped to stimulate the economy with cash when economic growth drops to 7% [Chart 2].
Growth slowdown fears were exacerbated when China's exports posted their lowest growth rate in almost a year in May while imports unexpectedly fell [Chart 3].
Sluggish growth momentum in China was also highlighted by data points, missing analysts' forecasts in industrial production, despite growing in April [Chart 4].