China Policy Signals Perplex Market as Fidelity Says ‘Confused’
- Central bank has been tightening and loosening liquidity
- PBOC using short-term rates, lending tools to tweak policy
PBOC Said to Order Banks to Curb Loans
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China’s frequent tweaks to monetary policy are puzzling market watchers.
In recent weeks, the People’s Bank of China has been using lending tools to both tighten and loosen liquidity as authorities seek to curb leverage while preventing a cash squeeze before the country’s biggest annual holiday starts on Friday.