China’s central bank to step up easing, won’t borrow Fed playbook | Reuters


China’s central bank will ramp up its policy easing to support the coronavirus-ravaged economy but debt worries and property risks will prevent it from following the U.S. Federal Reserve’s steep rate cuts or quantitative easing moves, policy sources said.

China’s leaders have pledged to combat the impact from the pandemic that looks to have tipped the world’s second-largest economy into its first quarterly contraction in at least 30 years, as mounting job losses pose a threat to social stability.

The People’s Bank of China (PBOC) will boost credit and lower funding costs, especially for small firms seen as vital for growth and jobs, and accommodate increased fiscal spending, according to three sources involved in internal policy discussions.

Source: Exclusive: China’s central bank to step up easing, won’t borrow Fed playbook – sources – Reuters

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