China slashes rates in response to soaring youth unemployment.

China's central bank has cut its key policy rate, the medium-term lending rate, from 2.75% to 2.65%, the second cut this week, as new government data shows a gloomy picture of the post-Covid recovery in the world's second-largest economy. Urban youth unemployment hit another new high in May, reaching 20.8%, and is expected to worsen when a record 11.6 million college students enter the job market this summer. The majority of the latest economic data are below the already-low consensus, raising the urgency for more stimulus.