(Bloomberg) -- It started with a cryptic quote from President Xi Jinping buried in a 172-page book on the financial sector. Three months later, plans for...
-- It started with a cryptic quote from President Xi Jinping buried in a 172-page book on the financial sector. Three months later, plans for potentially the biggest shift in years in how China conducts monetary policy are starting to surface.‘I Live in Hell’: Anti-Growth Fervor Grips US South After Pandemic Boom
The PBOC is also moving toward price-based tools like interest rates and downplaying quantity-based tools such as the amount of credit. Pan said on Wednesday that it’s time to pay less attention to loan growth because borrowing by real estate developers and local governments is in decline as part of the economy’s transition.
One conclusion many analysts drew from Pan’s speech is that the PBOC is preparing to downplay what’s been one of its headline instruments: the one-year policy loans known as the medium-term lending facility. Since it was introduced a decade ago, the MLF has become a major channel for the central bank to inject money into the economy and guide market rates.
Financial News, a newspaper managed by the PBOC, on Thursday cited unnamed industry experts as saying that the central bank should weaken the link between MLF — which represents banks’ financing costs — and the loan prime rate, a benchmark for lending rates to the real economy. The latter is more important because actual borrowers’ costs matters more for economic growth, according to the report.
Bloomberg Interest-Rate Xi Jinping Monetary Policy China
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Xi’s Mystery PBOC Plans Take Shape With Biggest Shift in YearsIt started with a cryptic quote from President Xi Jinping buried in a 172-page book on the financial sector. Three months later, plans for potentially the biggest shift in years in how China conducts monetary policy are starting to surface.
Read more »
China Studying Implementation of PBOC Bond Trading, Pan Says(Bloomberg) -- China’s central bank chief said it is studying how to implement government bond trading with the finance ministry, while rejecting the idea...
Read more »
China Is Studying Implementation of PBOC Bond Trading, Says PanChina’s central bank chief said it is studying how to implement government bond trading together with the finance ministry, while rejecting the idea the practice would equate to quantitative easing.
Read more »
China Should Use Quantitative Easing If Needed: Ex-PBOC Adviser(Bloomberg) -- China should shake off its “taboo” regarding quantitative easing — the once-unorthodox central bank policy of buying government bonds — and...
Read more »
China Should Break QE Taboo, Widen Deficit, Ex-PBOC Adviser SaysChina should shake off its “taboo” regarding quantitative easing — the once-unorthodox central bank policy of buying government bonds — and recognize that it may be necessary in the interest of stoking economic growth, a former People’s Bank of China adviser said.
Read more »
PBOC’s Bond-Trading Drumbeat Leaves Market Debating the HowGrowing speculation the People’s Bank of China will add to its policy toolbox by buying and selling government bonds has market watchers debating how that’s likely to work in practice.
Read more »