HONG KONG—For the past two decades, China has conditioned global companies and markets to anticipate big government spending at any hint of an economic slowdown. Now, as growth sputters, Beijing is taking only small steps toward boosting its ailing economy.
On Monday, China’s central bank cut two key interest rates, as fresh economic data showed a range of economic activity slowing in July. Unlike in the U.S., interest rates in China have a limited effect, and economists said the move would likely do little to encourage further borrowing by households and businesses.