Stealthy or Normal? Analysts Diverge on PBOC’s Action
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Just a normal banking-system operation to cope with a brief liquidity shortage? Or a secretive move to shore up growth as China faces up to the danger of a hard landing for its economy?
As economists in China woke up to overnight news from website Sina.com that the People’s Bank of China was extending 500 billion yuan ($81 billion) of credit to the country’s five largest lenders, their interpretations of the step diverged. Without a PBOC statement to explain policy makers’ motive or intentions, there was little from officialdom to go on.