The debate now is not whether China’s policymakers are easing but by how much
China is no different. Its macroeconomic policymaking is a combination of acts and signals, execution and exegesis. On December 6th, for example, the People’s Bank of China announced that it was cutting the reserve requirement ratio by half a percentage point, from a weighted average of 8.9% to 8.4%. That, it said, would “unleash” about 1.2trn yuan of funding.
But the decision was accompanied by some cautionary talk. “The stance of sound monetary policy remains unchanged,” the central bank said. It also pointed out that banks will need part of the additional funds to repay medium-term loans from the central bank that are due to mature on December 15th. Much of the extra money would, in other words, soon return to the institution that had unleashed it. The impact of the cut “is likely to be neutral”, said one analyst, quoted by, an official newspaper.
Perhaps the clearest evidence of easing lies not in the deeds of the central bank but in the words of the Politburo, the 25-member body that oversees the Communist Party. After a meeting on December 6th to set the macroeconomic tone for 2022, it emphasised expanding domestic demand and preserving the “six stabilities” . The Politburo also had some words of comfort for the beleaguered property market. It said the sector should be supported to better serve homebuyers’ “reasonable” demand.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Nicaragua cuts ties with Taiwan, switches side to ChinaManagua says 'there is only one China existing in the world,' in a recognition of the 'One China' policy and reducing Taipei's dwindling pool of international allies.
Read more »
China smarts as Joe Biden opens democracy summit to counter autocracyPresident Biden's Summit for Democracy began as China spent the week trying to convince observers that it is a democracy too.
Read more »
Analysis: Xi's next term needs a new China portfolio, investors sayFor global banks and fund managers drawing up their 2022 China investment strategies, one factor occupies their minds but eludes valuation models: President Xi Jinping's next five years in office.
Read more »
China guilty of genocide, crimes against humanity against Uyghurs, watchdog findsA public tribinal led by a prominent British human rights lawyer has found that China is committing genocide by imposing measures to control Uighur births in the northwest Xinjiang province.
Read more »
China dismisses UK, Canada Olympic boycott as 'farce'China is dismissing the decision by Canada and the United Kingdom to join Washington’s diplomatic boycott of the 2022 Beijing Winter Olympic Games as a “farce.”
Read more »
Taiwan loses diplomatic ally Nicaragua to China | AP NewsTaiwan has lost Nicaragua as a diplomatic ally after the Central American country said it is officially recognize only China, which claims self-ruled Taiwan as part of its territory. The move leaves Taiwan with 14 countries globally that recognize it.
Read more »