
Please try another search
(Bloomberg) -- China’s central bank signaled possible easing measures to aid the economy’s recovery as growth weakens.
In its latest quarterly monetary policy report published Friday, the People’s Bank of China removed a few key phrases cited in previous reports, including sticking with “normal monetary policy.” That suggests a shift in stance toward more supportive monetary policy, according to economists at Citigroup Inc (NYSE:C)., Nomura Holdings (NYSE:NMR) Inc. and Goldman Sachs Group Inc (NYSE:GS).
The report also dropped the phrase to “control the valve on money supply,” which suggests a step-up of monetary easing, according to Macquarie Group (OTC:MQBKY) Ltd.’s Larry Hu.
Any easing steps would likely be targeted toward small businesses and green finance, according to economists, similar to measures the PBOC has already taken in recent weeks, including 200 billion yuan ($31 billion) of financing for coal projects announced last week.
Goldman Sachs’ Hui Shan and colleagues said policy interest rates would likely remain unchanged, while Nomura’s Lu Ting said the chance of a reduction in the reserve requirement ratio will rise in coming months.
“We expect Beijing to soon significantly step up its monetary easing and fiscal stimulus to counteract the increasing downward pressure,” Lu said.
The PBOC’s quarterly report came on the same day that Premier Li Keqiang told a seminar China still faces “many challenges” in keeping the economy stable, although this year’s goals will likely be achieved.
Liu Shijin, who sits on the central bank’s monetary policy committee, said in an online forum Sunday that the economy could enter a period of “quasi-stagflation,” which needs close attention if it happens.
©2021 Bloomberg L.P.
Are you sure you want to block %USER_NAME%?
By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.
%USER_NAME% was successfully added to your Block List
Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.
I feel that this comment is:
Thank You!
Your report has been sent to our moderators for review
Add a Comment
We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
Enrich the conversation, don’t trash it.
Stay focused and on track. Only post material that’s relevant to the topic being discussed.
Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.